Exam 19: Managing Marketings Link With Other Functional Areas

Regarding the use of funds generated within the firm:

Which of the following would NOT be paid for using working capital?

There are a number of different possible sources of capital, but:

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

Any increase in profit contribution that a strategy generates, without increasing capital invested,

If a company borrows money via debt financing, the people or institutions that loan the money get an ownership share in the company.

A bank (or other institution) that provides debt financing to fund a marketing plan is usually more willing to take risks than are investors who buy stock.

Working capital would not be used to pay for:

Marketing managers should plan time for strategy changes and not put undue pressure on the people in their organization to perform heroic efforts.

Which of the following statements about mass customization is True?

Compared to most U.S. firms, Japanese firms have a reputation for expecting a marketing plan to be profitable in a much shorter period of time.

Which of the following is an example of a FUNCTIONAL cost account?

Capital is the financial term for the amount of cash that a firm has in a bank checking account or other readily available form.

When a firm is a virtual corporation, it acts primarily as a producer-and leaves it to another firm to coordinate functions such as marketing, finance, and human resources.

Which of the following statements is FALSE in regard to borrowing money?

Some banks work aggressively to attract business customers who want loans, but most commercial lenders like to avoid risk and making loans that are not secured with assets.

What is the first step in marketing cost analysis?

Cross-functional challenges are greater for minor changes to a strategy than for a completely new strategy.

Production capacity is more easily matched to the distribution of a new product if that distribution is staged.

Accounting statements that are prepared for tax purposes and for outside investors often aren't helpful for managers who need to make decisions about marketing strategy.