Question 1

A major difference between functional accounts and natural accounts is that functional accounts

Accepted Answer

A)  are based on the contribution-margin approach and natural accounts are based on the full cost approach. 
B)  always total to a lower overall expense than the total of the natural accounts. 
C)  might be used to compare the costs of serving different customers-but natural accounts are not suited to that purpose. 
D)  are the basis for most accounting systems, but natural accounts are more useful for marketing managers. 
E)  do not consider fixed costs, but natural accounts do. 
A)  are based on the contribution-margin approach and natural accounts are based on the full cost approach. 
B)  always total to a lower overall expense than the total of the natural accounts. 
C)  might be used to compare the costs of serving different customers-but natural accounts are not suited to that purpose. 
D)  are the basis for most accounting systems, but natural accounts are more useful for marketing managers. 
E)  do not consider fixed costs, but natural accounts do. C

Question 2

When a firm uses debt financing, the organization providing financing receives an ownership share in the company.

Accepted Answer

A) True 
 B)False  False

Question 3

Capital sources include:

Accepted Answer

A)  bonds 
B)  profits 
C)  loans 
D)  stocks 
E)  All of these. 
A)  bonds 
B)  profits 
C)  loans 
D)  stocks 
E)  All of these. E

Question 4

Which of the following is an example of a task transfer?

Accepted Answer

A)  An employee who has been shifted to a different department with different responsibilities and duties 
B)  A firm that bases its toll-free customer care service for technical problems in a different country because it offers cheap, skilled labor 
C)  A project whose objectives have been broken down to grouped tasks to be handled by specific departments 
D)  A firm that has eliminated its customer-service department and has made its sales representatives responsible for resolving customer queries 
E)  A flexible manufacturing unit that is required to manufacture another product because of a sudden spike in the product's demand in the market 
A)  An employee who has been shifted to a different department with different responsibilities and duties 
B)  A firm that bases its toll-free customer care service for technical problems in a different country because it offers cheap, skilled labor 
C)  A project whose objectives have been broken down to grouped tasks to be handled by specific departments 
D)  A firm that has eliminated its customer-service department and has made its sales representatives responsible for resolving customer queries 
E)  A flexible manufacturing unit that is required to manufacture another product because of a sudden spike in the product's demand in the market

Question 5

Which of the following statements is true?

Accepted Answer

A)  Direct distribution approaches usually require less investment capital than indirect approaches. 
B)  Intermediaries that pay for products when they purchase them and pay the costs of carrying inventory help a producer's cash flow. 
C)  Public warehouses and transportation firms increase the capital needed for logistics facilities. 
D)  More capital is needed when intermediaries take on responsibility for promotion. 
E)  Control is higher if indirect distribution is used. 
A)  Direct distribution approaches usually require less investment capital than indirect approaches. 
B)  Intermediaries that pay for products when they purchase them and pay the costs of carrying inventory help a producer's cash flow. 
C)  Public warehouses and transportation firms increase the capital needed for logistics facilities. 
D)  More capital is needed when intermediaries take on responsibility for promotion. 
E)  Control is higher if indirect distribution is used.

Question 6

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

Accepted Answer

A)  mass marketing 
B)  standardization 
C)  traditional manufacturing 
D)  outsourcing 
E)  mass customization 
A)  mass marketing 
B)  standardization 
C)  traditional manufacturing 
D)  outsourcing 
E)  mass customization

Question 7

A firm's working capital may come from either internal sources-such as sales revenue and profits-or external sources-such as money from sales of stocks or bonds.

Accepted Answer

A) True 
 B)False

Question 8

Human resource issues include recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

Accepted Answer

A) True 
 B)False

Question 9

A strategy that's expected to "pay its own way" must be based on a plan that generates the working capital needed to implement the plan.

Accepted Answer

A) True 
 B)False

Question 10

A virtual corporation:

Accepted Answer

A)  does all of its production "in house". 
B)  looks for capable suppliers who can meet the specs it lays out. 
C)  acts primarily as a producer. 
D)  needs to have a good marketing plan. 
E)  looks for capable suppliers who can meet the specs it lays out and needs to have a good marketing plan only. 
A)  does all of its production "in house". 
B)  looks for capable suppliers who can meet the specs it lays out. 
C)  acts primarily as a producer. 
D)  needs to have a good marketing plan. 
E)  looks for capable suppliers who can meet the specs it lays out and needs to have a good marketing plan only.

Question 11

It would probably be a bad idea to go to work as a salaried salesperson selling installations for a firm that didn't have any working capital.

Accepted Answer

A) True 
 B)False

Question 12

A company has three products (X, Y, and Z) that it sells, packs, and ships to its customers. Because the products have different sizes they also have different packing and shipping costs so we will use a new measure-a packing/shipping unit. Because Product Y is the smallest of the three products, we will assign it a value of 1 packing/shipping unit. Product X is twice as big as Product Y and Product Z is four times as big as Product Y. On a monthly basis, this company sells an average of 1,500 units of Product X, 800 units of Product Y, and 60 units of Product Z. If the company spends on average of $3,720 each month on total packing/shipping costs, what amount should it allocate to Product Z per month (to the nearest dollar amount)?

Accepted Answer

A)  $101 
B)  $169 
C)  $221 
D)  $498 
E)  $736 
A)  $101 
B)  $169 
C)  $221 
D)  $498 
E)  $736

Question 13

Managed Care Concepts facilitates the processing of medical claims for organizations, such as government agencies, whose employees are injured while performing their jobs. The company does not actually process the claims. Instead, it coordinates the work of customer service personnel, nurses, physicians, case managers, and pharmacists who work for other companies and have some role to play in the processing of an injured worker's claim. Managed Care Concepts relieves its clients of the burden of processing their own injured worker claims and can usually save the organizations a significant amount of money. Managed Care Concepts operates like a:

Accepted Answer

A)  Merchant wholesaler. 
B)  Manufacturer's agent. 
C)  Virtual Corporation. 
D)  Manufacturer. 
E)  None of these. 
A)  Merchant wholesaler. 
B)  Manufacturer's agent. 
C)  Virtual Corporation. 
D)  Manufacturer. 
E)  None of these.

Question 14

The first step in marketing cost analysis is to:

Accepted Answer

A)  Reclassify the dollar cost entries in the functional accounts into natural cost accounts. 
B)  Use the entries in the functional accounts to evaluate the profitability of profit centers. 
C)  Allocate the entries in the functional accounts to specific customers. 
D)  Reclassify the dollar cost entries in the natural accounts into functional cost accounts. 
E)  None of these. 
A)  Reclassify the dollar cost entries in the functional accounts into natural cost accounts. 
B)  Use the entries in the functional accounts to evaluate the profitability of profit centers. 
C)  Allocate the entries in the functional accounts to specific customers. 
D)  Reclassify the dollar cost entries in the natural accounts into functional cost accounts. 
E)  None of these.

Question 15

At Dell's Web site, a student can order a laptop computer with the exact memory capability and software that she wants, and have it shipped to her dorm room within 48 hours. This is an example of:

Accepted Answer

A)  Combined target market approach. 
B)  Task transfer. 
C)  Mass customization. 
D)  Diversification strategy. 
E)  Single target market approach. 
A)  Combined target market approach. 
B)  Task transfer. 
C)  Mass customization. 
D)  Diversification strategy. 
E)  Single target market approach.

Question 16

A marketing plan for a new strategy needs to take into consideration the time-and effort-that will be required to get people up to speed on the new jobs they will be expected to do.

Accepted Answer

A) True 
 B)False

Question 17

Regarding marketing cost analysis:

Accepted Answer

A)  there is only one right way to allocate functional costs. 
B)  traditional accounting analysis doesn't analyze the purpose of marketing costs. 
C)  marketing costs usually should be allocated to general overhead. 
D)  functional accounts and natural accounts usually have the same names. 
E)  All of these are true. 
A)  there is only one right way to allocate functional costs. 
B)  traditional accounting analysis doesn't analyze the purpose of marketing costs. 
C)  marketing costs usually should be allocated to general overhead. 
D)  functional accounts and natural accounts usually have the same names. 
E)  All of these are true.

Question 18

"Working capital" is the money needed to pay for investments in facilities, equipment and other "fixed assets" needed to do the firm's basic work.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following expenses involves the working capital a company needs for operation?

Accepted Answer

A)  The money required to purchase land in order to set up a plant 
B)  The money required to purchase equipment necessary to begin operations 
C)  The money required to pay the salary of employees 
D)  The money required to acquire a competing firm 
E)  The money required to set up the power grid for a new manufacturing plant 
A)  The money required to purchase land in order to set up a plant 
B)  The money required to purchase equipment necessary to begin operations 
C)  The money required to pay the salary of employees 
D)  The money required to acquire a competing firm 
E)  The money required to set up the power grid for a new manufacturing plant

Question 20

A firm that relies on mass customization tries to get a competitive advantage by finding a low-cost way to give each customer in its target market more or better choices.

Accepted Answer

A) True 
 B)False

A major difference between functional accounts and natural accounts is that functional accounts

When a firm uses debt financing, the organization providing financing receives an ownership share in the company.

Capital sources include:

Which of the following is an example of a task transfer?

Which of the following statements is true?

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

A firm's working capital may come from either internal sources-such as sales revenue and profits-or external sources-such as money from sales of stocks or bonds.

Human resource issues include recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

A strategy that's expected to "pay its own way" must be based on a plan that generates the working capital needed to implement the plan.

A virtual corporation:

It would probably be a bad idea to go to work as a salaried salesperson selling installations for a firm that didn't have any working capital.

The first step in marketing cost analysis is to:

At Dell's Web site, a student can order a laptop computer with the exact memory capability and software that she wants, and have it shipped to her dorm room within 48 hours. This is an example of:

A marketing plan for a new strategy needs to take into consideration the time-and effort-that will be required to get people up to speed on the new jobs they will be expected to do.

Regarding marketing cost analysis:

"Working capital" is the money needed to pay for investments in facilities, equipment and other "fixed assets" needed to do the firm's basic work.

Which of the following expenses involves the working capital a company needs for operation?

A firm that relies on mass customization tries to get a competitive advantage by finding a low-cost way to give each customer in its target market more or better choices.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Ethical Marketing in a Consumer-Oriented World

Filters

Exam 19: Managing Marketings Link With Other Functional Areas

A major difference between functional accounts and natural accounts is that functional accounts

When a firm uses debt financing, the organization providing financing receives an ownership share in the company.

Capital sources include:

Which of the following is an example of a task transfer?

Which of the following statements is true?

In serving individuals within target segments, _____ tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.

A firm's working capital may come from either internal sources-such as sales revenue and profits-or external sources-such as money from sales of stocks or bonds.

Human resource issues include recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

A strategy that's expected to "pay its own way" must be based on a plan that generates the working capital needed to implement the plan.

A virtual corporation:

It would probably be a bad idea to go to work as a salaried salesperson selling installations for a firm that didn't have any working capital.

The first step in marketing cost analysis is to:

At Dell's Web site, a student can order a laptop computer with the exact memory capability and software that she wants, and have it shipped to her dorm room within 48 hours. This is an example of:

A marketing plan for a new strategy needs to take into consideration the time-and effort-that will be required to get people up to speed on the new jobs they will be expected to do.

Regarding marketing cost analysis:

"Working capital" is the money needed to pay for investments in facilities, equipment and other "fixed assets" needed to do the firm's basic work.

Which of the following expenses involves the working capital a company needs for operation?

A firm that relies on mass customization tries to get a competitive advantage by finding a low-cost way to give each customer in its target market more or better choices.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Ethical Marketing in a Consumer-Oriented World

Filters