Which of the following statements about activity based costing (ABC) is most correct?
a. It uses a top down approach to cost allocation.
b. It is most useful for assigning costs to departments.
c. It is most useful for assigning costs to individual services.
d. It is easy to apply because it ignores overhead costs.
e. It is less costly to implement than traditional costing methods.
Ans: c. It is most useful for assigning costs to individual services.
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The IT department can identify individuals who abandon the shopping cart just prior to checkout. An effective strategy for the marketing department would be to:
A) send an e-mail to these individuals offering free shipping, a discount, or a simple reminder that they have items in the shopping basket B) turn the list of names over for a direct marketing campaign C) develop a viral marketing campaign with these individuals D) develop an interactive marketing campaign encouraging the individuals to generate customer reviews of the products placed in the shopping cart
Which of the following describes a standard test market?
A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels. B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors. C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services. D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume. E) none of the above