Question 1

Indirect distribution usually requires less investment capital than direct approaches.

Accepted Answer

A) True 
 B)False

Question 2

It's often hard for a marketing manager to be familiar with all of the costs associated with a product (or customer) without help from the firm's accountants.

Accepted Answer

A) True 
 B)False

Question 3

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

Accepted Answer

A)  Marketing capital. 
B)  Working capital. 
C)  Research capital. 
D)  Long-term capital. 
E)  None of these. 
A)  Marketing capital. 
B)  Working capital. 
C)  Research capital. 
D)  Long-term capital. 
E)  None of these.

Question 4

Each month the billing department of Lone Star Drilling, Inc., processes an average of 102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Accepted Answer

A)  $14 
B)  $17 
C)  $20 
D)  $22 
E)  $25 
A)  $14 
B)  $17 
C)  $20 
D)  $22 
E)  $25

Question 5

An electronic goods manufacturer launched a promotional campaign which involved a flat twenty percent discount on all purchases made on the manufacturer's website. This campaign became very popular. However, the large number of simultaneous purchases on the website caused it to crash. Which of the following statements can definitely be concluded from this information?

Accepted Answer

A)  The company's website was not secure, which made hacking easy. 
B)  The online sales resulting from this promotional campaign generated more revenue than its retail outlets during the same period. 
C)  Promotional campaigns involving a discount generally result in a loss rather than an increase in profit. 
D)  The company's website did not have the capacity to handle such a high load. 
E)  Sales at the manufacturer's retail stores were at an all-time low prior to the promotional campaign. 
A)  The company's website was not secure, which made hacking easy. 
B)  The online sales resulting from this promotional campaign generated more revenue than its retail outlets during the same period. 
C)  Promotional campaigns involving a discount generally result in a loss rather than an increase in profit. 
D)  The company's website did not have the capacity to handle such a high load. 
E)  Sales at the manufacturer's retail stores were at an all-time low prior to the promotional campaign.

Question 6

Working capital may be used to pay for:

Accepted Answer

A)  advertising 
B)  storing 
C)  employee salaries 
D)  what a firm owes suppliers 
E)  All of these. 
A)  advertising 
B)  storing 
C)  employee salaries 
D)  what a firm owes suppliers 
E)  All of these.

Question 7

_____ is the ability to produce a certain quantity and quality of specific goods or services.

Accepted Answer

A)  Economies of scope 
B)  Production capacity 
C)  Production possibility curve 
D)  Economies of scale 
E)  Marketing capability 
A)  Economies of scope 
B)  Production capacity 
C)  Production possibility curve 
D)  Economies of scale 
E)  Marketing capability

Question 8

Which of the following is NOT a FUNCTIONAL cost account?

Accepted Answer

A)  Packaging 
B)  Selling 
C)  Order entry 
D)  Rent 
E)  Billing 
A)  Packaging 
B)  Selling 
C)  Order entry 
D)  Rent 
E)  Billing

Question 9

_____ are the categories to which various costs are charged in the normal financial accounting cycle.

Accepted Answer

A)  Natural accounts 
B)  Live accounts 
C)  Functional accounts 
D)  Defined accounts 
E)  Normal accounts 
A)  Natural accounts 
B)  Live accounts 
C)  Functional accounts 
D)  Defined accounts 
E)  Normal accounts

Question 10

Which of the following observations concerning debt financing is NOT TRUE?

Accepted Answer

A)  The cost of borrowing money can be a real financial burden. 
B)  The impact of interest charges on prices is negligible. 
C)  Most commercial banks are conservative. 
D)  The greater the risk that the lender takes on, the greater the interest rate charge will be. 
E)  It might involve a loan from a commercial bank or the use of corporate bonds. 
A)  The cost of borrowing money can be a real financial burden. 
B)  The impact of interest charges on prices is negligible. 
C)  Most commercial banks are conservative. 
D)  The greater the risk that the lender takes on, the greater the interest rate charge will be. 
E)  It might involve a loan from a commercial bank or the use of corporate bonds.

Question 11

Training is especially important during rapid growth of a company because it takes time to hire people and get them up to speed.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements concerning human resources is NOT true?

Accepted Answer

A)  Most of the people affected by a new strategy are under the control of a marketing manager. 
B)  Communication is very important because you can't expect people to pull together in an organization-wide effort if they don't know what's going on. 
C)  People are one of a company's most important resources. 
D)  It is the marketing manager's job to communicate with others in the organization and explain the new strategy, what needs to happen, and why. 
E)  All of these are true. 
A)  Most of the people affected by a new strategy are under the control of a marketing manager. 
B)  Communication is very important because you can't expect people to pull together in an organization-wide effort if they don't know what's going on. 
C)  People are one of a company's most important resources. 
D)  It is the marketing manager's job to communicate with others in the organization and explain the new strategy, what needs to happen, and why. 
E)  All of these are true.

Question 13

Outsourcing production may increase a firm's flexibility in some ways, but it may also make production costs higher and quality control more difficult.

Accepted Answer

A) True 
 B)False

Question 14

____ are an internal source of capital.

Accepted Answer

A)  Loans 
B)  Sale of stocks 
C)  Retained earnings 
D)  Sale of bonds 
E)  Private equity 
A)  Loans 
B)  Sale of stocks 
C)  Retained earnings 
D)  Sale of bonds 
E)  Private equity

Question 15

Enterprise resource planning systems are used to integrate internal and external information management across the entire organization.

Accepted Answer

A) True 
 B)False

Question 16

The introduction of a totally new product idea would present a greater challenge in coordinating the activities of the different functional areas of a company than would a modification of an existing product.

Accepted Answer

A) True 
 B)False

Question 17

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

Accepted Answer

A) True 
 B)False

Question 18

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. If, 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, how many packing/shipping units should it allocate to Product Z per month (to the nearest whole number)?

Accepted Answer

A)  240 
B)  424 
C)  620 
D)  800 
E)  3,000 
A)  240 
B)  424 
C)  620 
D)  800 
E)  3,000

Question 19

A firm with a great strategy will always attract investors.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is true regarding excess capacity?

Accepted Answer

A)  Firms usually have excess capacity when the demand for the product is very high. 
B)  Excess capacity exists because the product is extremely useful and cheap but has no competitors. 
C)  If the demand of a product falls, excess capacity declines. 
D)  If the demand for a firm's product is stable, then excess capacity is likely to increase. 
E)  Excess capacity can be a safety net if demand suddenly picks up. 
A)  Firms usually have excess capacity when the demand for the product is very high. 
B)  Excess capacity exists because the product is extremely useful and cheap but has no competitors. 
C)  If the demand of a product falls, excess capacity declines. 
D)  If the demand for a firm's product is stable, then excess capacity is likely to increase. 
E)  Excess capacity can be a safety net if demand suddenly picks up.

Indirect distribution usually requires less investment capital than direct approaches.

It's often hard for a marketing manager to be familiar with all of the costs associated with a product (or customer) without help from the firm's accountants.

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

Each month the billing department of Lone Star Drilling, Inc., processes an average of 102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Working capital may be used to pay for:

_____ is the ability to produce a certain quantity and quality of specific goods or services.

Which of the following is NOT a FUNCTIONAL cost account?

_____ are the categories to which various costs are charged in the normal financial accounting cycle.

Which of the following observations concerning debt financing is NOT TRUE?

Training is especially important during rapid growth of a company because it takes time to hire people and get them up to speed.

Which of the following statements concerning human resources is NOT true?

Outsourcing production may increase a firm's flexibility in some ways, but it may also make production costs higher and quality control more difficult.

____ are an internal source of capital.

Enterprise resource planning systems are used to integrate internal and external information management across the entire organization.

The introduction of a totally new product idea would present a greater challenge in coordinating the activities of the different functional areas of a company than would a modification of an existing product.

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

A firm with a great strategy will always attract investors.

Which of the following statements is true regarding excess capacity?

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

Indirect distribution usually requires less investment capital than direct approaches.

It's often hard for a marketing manager to be familiar with all of the costs associated with a product (or customer) without help from the firm's accountants.

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

Each month the billing department of Lone Star Drilling, Inc., processes an average of 102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Working capital may be used to pay for:

_____ is the ability to produce a certain quantity and quality of specific goods or services.

Which of the following is NOT a FUNCTIONAL cost account?

_____ are the categories to which various costs are charged in the normal financial accounting cycle.

Which of the following observations concerning debt financing is NOT TRUE?

Training is especially important during rapid growth of a company because it takes time to hire people and get them up to speed.

Which of the following statements concerning human resources is NOT true?

Outsourcing production may increase a firm's flexibility in some ways, but it may also make production costs higher and quality control more difficult.

____ are an internal source of capital.

Enterprise resource planning systems are used to integrate internal and external information management across the entire organization.

The introduction of a totally new product idea would present a greater challenge in coordinating the activities of the different functional areas of a company than would a modification of an existing product.

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

A firm with a great strategy will always attract investors.

Which of the following statements is true regarding excess capacity?

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