Question 1

Apple is a good example of a company that uses its own internal funds to research,develop,and bring to market new products like the iPad,iPhone,and iPod.

Accepted Answer

A) True 
 B)False  True

Question 2

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  True

Question 3

Mass customization applies the principles of mass production to the challenge of meeting the unique needs of individual customers.

Accepted Answer

A) True 
 B)False  True

Question 4

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.

Question 5

Firms that use mass customization

Accepted Answer

A)   may target either business customers or final consumers.
B)   may be able to take advantage of the Internet for orders.
C)   may be able to give their customers more or better choices.
D)   are likely to have higher costs than do firms who produce more standardized products, but may earn better profit margins.
E)   All of these

Question 6

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.

Question 7

A company with a profitable strategy has its own internal source of funds.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a part of the functional account category of a factory?

Accepted Answer

A)   Salaries
B)   Supplies
C)   Raw materials
D)   Advertising
E)   Maintenance

Question 9

As compared to natural accounts,FUNCTIONAL ACCOUNTS:

Accepted Answer

A)   are the accounts to which various costs are charged in the normal accounting cycle.
B)   show the purpose for which expenditures are made.
C)   include items such as storing, salaries, and taxes.
D)   All of these.
E)   Both are the accounts to which various costs are charged in the normal accounting cycle; and include items such as storing, salaries, and taxes.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 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

Question 13

Finding and allocating capital is usually the responsibility handled by a firm's chief financial officer.

Accepted Answer

A) True 
 B)False

Question 14

An automobile plant is capable of manufacturing 40 sport utility vehicles in 24 hours.This details the manufacturing plant's _____.

Accepted Answer

A)   task transfers
B)   production capacity
C)   mass customization strategy
D)   working capital
E)   natural accounts

Question 15

Production flexibility allows a firm to make better use of EDI or some other type of computerized reorder system-because the firm can respond to customer needs more quickly.

Accepted Answer

A) True 
 B)False

Question 16

In marketing cost analysis,all of the following are considered functional accounts EXCEPT:

Accepted Answer

A)   rent.
B)   billing.
C)   order assembly.
D)   storing.
E)   transporting.

Question 17

Service firms are finding ways to reduce the cost of some of their production work with _____,using telecommunications to move service operations to places where there are pools of skilled workers.

Accepted Answer

A)   skill transfer
B)   task transfer
C)   knowledge transfer
D)   turnkey projects
E)   mobile environments

Question 18

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.

Question 19

Which of the following is NOT a FUNCTIONAL cost account?

Accepted Answer

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

Question 20

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.

Exam 4: Managing Marketings Link With Other Functional Areas

Apple is a good example of a company that uses its own internal funds to research,develop,and bring to market new products like the iPad,iPhone,and iPod.

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

Mass customization applies the principles of mass production to the challenge of meeting the unique needs of individual customers.

Which of the following statements is true?

Firms that use mass customization

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

A company with a profitable strategy has its own internal source of funds.

Which of the following is a part of the functional account category of a factory?

As compared to natural accounts,FUNCTIONAL ACCOUNTS:

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

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

Finding and allocating capital is usually the responsibility handled by a firm's chief financial officer.

An automobile plant is capable of manufacturing 40 sport utility vehicles in 24 hours.This details the manufacturing plant's _____.

Production flexibility allows a firm to make better use of EDI or some other type of computerized reorder system-because the firm can respond to customer needs more quickly.

In marketing cost analysis,all of the following are considered functional accounts EXCEPT:

Service firms are finding ways to reduce the cost of some of their production work with _____,using telecommunications to move service operations to places where there are pools of skilled workers.

Regarding marketing cost analysis:

Which of the following is NOT a FUNCTIONAL cost account?

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: