Question 1

Internal sources for capital include loans, stocks, and bonds.

Accepted Answer

A) True 
 B)False

Question 2

A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should:

Accepted Answer

A)  allocate $2 million of the advertising costs to each target market. 
B)  allocate these costs to general overhead. 
C)  determine the purpose of the advertising and allocate costs to products and target markets accordingly. 
D)  allocate these costs to each product and target market on the basis of their percentage of total sales. 
E)  allocate $3 million of the advertising costs to each product. 
A)  allocate $2 million of the advertising costs to each target market. 
B)  allocate these costs to general overhead. 
C)  determine the purpose of the advertising and allocate costs to products and target markets accordingly. 
D)  allocate these costs to each product and target market on the basis of their percentage of total sales. 
E)  allocate $3 million of the advertising costs to each product.

Question 3

With the mass-customization approach, a firm tries to find a low-cost way to give individual customers more or better choices.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is associated with debt financing?

Accepted Answer

A)  Dividends 
B)  Stock appreciation 
C)  Interest cost 
D)  Bonus shares 
E)  Stock split 
A)  Dividends 
B)  Stock appreciation 
C)  Interest cost 
D)  Bonus shares 
E)  Stock split

Question 5

Funded marketing plans have no budget constraints.

Accepted Answer

A) True 
 B)False

Question 6

A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding marketing cost analysis is FALSE?

Accepted Answer

A)  Functional accounts include items such as salaries, wages, supplies, raw materials, and advertising. 
B)  The costs allocated to the functional accounts will be equal in total to those in the natural accounts. 
C)  Functional accounts can be used to show the profitability of territories, products, customers, sales representatives, and so on. 
D)  Cost analysis is not performance analysis. 
E)  Traditional accounting methods do not show the purpose for which marketing expenditures are made. 
A)  Functional accounts include items such as salaries, wages, supplies, raw materials, and advertising. 
B)  The costs allocated to the functional accounts will be equal in total to those in the natural accounts. 
C)  Functional accounts can be used to show the profitability of territories, products, customers, sales representatives, and so on. 
D)  Cost analysis is not performance analysis. 
E)  Traditional accounting methods do not show the purpose for which marketing expenditures are made.

Question 8

Paying for growth by reinvesting cash generated from operations is usually less expensive than borrowing money because no interest expense is involved.

Accepted Answer

A) True 
 B)False

Question 9

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Accepted Answer

A) True 
 B)False

Question 10

Mass customization serves individual needs.

Accepted Answer

A) True 
 B)False

Question 11

A marketing plan is more likely to be funded if the marketing manager has included financial measures as quantitative criteria when screening possible opportunities.

Accepted Answer

A) True 
 B)False

Question 12

Working capital would be used to pay for:

Accepted Answer

A)  employee salaries. 
B)  marketing research. 
C)  advertising. 
D)  storing. 
E)  All of these. 
A)  employee salaries. 
B)  marketing research. 
C)  advertising. 
D)  storing. 
E)  All of these.

Question 13

The challenges of matching supply and demand often occur when a marketing plan calls for:

Accepted Answer

A)  an international roll out instead of a regional roll out. 
B)  quick expansion into many different types of channels. 
C)  simultaneously expanding into many different market areas rather than expanding into one market after another. 
D)  Any of these would increase the challenge of matching supply and demand. 
E)  None of these. 
A)  an international roll out instead of a regional roll out. 
B)  quick expansion into many different types of channels. 
C)  simultaneously expanding into many different market areas rather than expanding into one market after another. 
D)  Any of these would increase the challenge of matching supply and demand. 
E)  None of these.

Question 14

A widespread shift to mass customization has not occurred because firms found that

Accepted Answer

A)  production costs were still high. 
B)  the Internet offered a low-cost way to get a lot of orders. 
C)  mass production is always better. 
D)  economies of scale provides a better alternative. 
E)  technology introduces a new set of problems. 
A)  production costs were still high. 
B)  the Internet offered a low-cost way to get a lot of orders. 
C)  mass production is always better. 
D)  economies of scale provides a better alternative. 
E)  technology introduces a new set of problems.

Question 15

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted-and then successfully implemented-if the links between marketing and other functional areas have been carefully considered from the outset.

Accepted Answer

A) True 
 B)False

Question 16

Classifying marketing costs in terms of their purpose-why the money was spent-requires the use of:

Accepted Answer

A)  iceberg accounts. 
B)  marketing audit accounts. 
C)  expense accounts. 
D)  functional accounts. 
E)  natural accounts. 
A)  iceberg accounts. 
B)  marketing audit accounts. 
C)  expense accounts. 
D)  functional accounts. 
E)  natural accounts.

Question 17

A virtual corporation is likely to look for a capable supplier to produce a product that meets the specs laid out in the firm's marketing plan.

Accepted Answer

A) True 
 B)False

Question 18

Each month the billing department of Phoenix Enterprises processes an average of 51 orders from customers at a cost of about $612 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Accepted Answer

A)  $4 
B)  $6 
C)  $8 
D)  $10 
E)  $12 
A)  $4 
B)  $6 
C)  $8 
D)  $10 
E)  $12

Question 19

Indirect distribution usually

Accepted Answer

A)  requires less investment capital than direct approaches. 
B)  increases the initial cash outlay. 
C)  has no effect on capital investment when compared to direct approaches. 
D)  drastically increases the time required to bring a product to market. 
E)  is always the most effective distribution method. 
A)  requires less investment capital than direct approaches. 
B)  increases the initial cash outlay. 
C)  has no effect on capital investment when compared to direct approaches. 
D)  drastically increases the time required to bring a product to market. 
E)  is always the most effective distribution method.

Question 20

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

Accepted Answer

A) True 
 B)False

Internal sources for capital include loans, stocks, and bonds.

A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should:

With the mass-customization approach, a firm tries to find a low-cost way to give individual customers more or better choices.

Which of the following is associated with debt financing?

Funded marketing plans have no budget constraints.

A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.

Which of the following statements regarding marketing cost analysis is FALSE?

Paying for growth by reinvesting cash generated from operations is usually less expensive than borrowing money because no interest expense is involved.

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Mass customization serves individual needs.

A marketing plan is more likely to be funded if the marketing manager has included financial measures as quantitative criteria when screening possible opportunities.

Working capital would be used to pay for:

The challenges of matching supply and demand often occur when a marketing plan calls for:

A widespread shift to mass customization has not occurred because firms found that

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted-and then successfully implemented-if the links between marketing and other functional areas have been carefully considered from the outset.

Classifying marketing costs in terms of their purpose-why the money was spent-requires the use of:

A virtual corporation is likely to look for a capable supplier to produce a product that meets the specs laid out in the firm's marketing plan.

Each month the billing department of Phoenix Enterprises processes an average of 51 orders from customers at a cost of about $612 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Indirect distribution usually

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

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

Internal sources for capital include loans, stocks, and bonds.

A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should:

With the mass-customization approach, a firm tries to find a low-cost way to give individual customers more or better choices.

Which of the following is associated with debt financing?

Funded marketing plans have no budget constraints.

A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.

Which of the following statements regarding marketing cost analysis is FALSE?

Paying for growth by reinvesting cash generated from operations is usually less expensive than borrowing money because no interest expense is involved.

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Mass customization serves individual needs.

A marketing plan is more likely to be funded if the marketing manager has included financial measures as quantitative criteria when screening possible opportunities.

Working capital would be used to pay for:

The challenges of matching supply and demand often occur when a marketing plan calls for:

A widespread shift to mass customization has not occurred because firms found that

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted-and then successfully implemented-if the links between marketing and other functional areas have been carefully considered from the outset.

Classifying marketing costs in terms of their purpose-why the money was spent-requires the use of:

A virtual corporation is likely to look for a capable supplier to produce a product that meets the specs laid out in the firm's marketing plan.

Each month the billing department of Phoenix Enterprises processes an average of 51 orders from customers at a cost of about $612 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Indirect distribution usually

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

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