 |
1 | |
Relative to production cost accounting, marketing cost analysis is: |
| | A) | relatively simple |
| | B) | more precise |
| | C) | less exact |
| | D) | easy to measure |
| | E) | much less useful |
|
|
2 | |
Net sales less cost of goods sold equals: |
| | A) | gross margin |
| | B) | total operating expenses |
| | C) | net profit |
| | D) | total compensation |
| | E) | discretionary income |
|
|
3 | |
In typical accounting records, operating expenses would include all of the following, except: |
| | A) | sales force travel |
| | B) | administrative salaries |
| | C) | supplies and telephone |
| | D) | sales force commissions |
| | E) | cost of goods sold |
|
|
4 | |
In an activity-related expense analysis, expense activity categories would include all of the following, except: |
| | A) | personal selling expenses |
| | B) | warehousing expenses |
| | C) | office supplies |
| | D) | shipping expenses |
| | E) | advertising expenses |
|
|
5 | |
If a company dropped a given territory, all direct expenses tied to that territory would be: |
| | A) | attributed to the remaining territories. |
| | B) | completely eliminated |
| | C) | greatly reduced, but not completely eliminated |
| | D) | turned into activity expenses |
| | E) | turned into ledger expenses |
|
|
6 | |
In general, most marketing costs are: |
| | A) | totally direct |
| | B) | totally indirect |
| | C) | totally or partially direct |
| | D) | totally or partially indirect |
| | E) | None of the above |
|
|
7 | |
It is preferable to think of overhead costs as: |
| | A) | totally direct |
| | B) | partially direct |
| | C) | indirect |
| | D) | being solely attached to individual marketing units |
| | E) | fixed |
|
|
8 | |
Of the following, the best example of a totally indirect cost is: |
| | A) | the salary of a top-level sales executive. |
| | B) | order-filling expenses |
| | C) | shipping expenses |
| | D) | a sales rep's travel expenses |
| | E) | a sales rep's commissions |
|
|
9 | |
In the full-cost method, all expenses are allocated: |
| | A) | to total overhead |
| | B) | to cost of goods sold |
| | C) | among the marketing units under study |
| | D) | to the largest territory |
| | E) | None of the above |
|
|
10 | |
All of the following are ways to increase order size and reduce small-order marketing costs, except: |
| | A) | establish a service charge to combat small orders |
| | B) | Encourage customers to order weekly, instead of monthly |
| | C) | Encourage customers to buy from fewer suppliers |
| | D) | Shift small accounts to an intermediary |
| | E) | Establish a minimum order size |
|
2003 McGraw-Hill Higher Education