When a Media Planner Determines Whether an Advertisement for Diapers

question 113

Multiple Choice

When a media planner determines whether an advertisement for diapers should be placed in Parents magazine or Sports Illustrated, the planner is evaluating the media vehicle's ________.

• A) profit margin
• B) flexibility
• C) rate of depreciation
• D) audience quality
• E) cost per exposure

---

Definitions:

Variable Overhead Cost

Those expenses of operating a business that vary with the level of output or production activity, such as utilities for manufacturing equipment.

Maintenance Costs

Expenses incurred in the upkeep of machinery, buildings, and equipment to ensure efficient operation and prevent breakdowns.

Machine-Hours

A measurement unit representing the amount of work a machine can perform in one hour, often used in manufacturing to allocate costs based on machine usage.

Variable Manufacturing Overhead

Variable manufacturing overhead consists of costs that vary with the level of production, such as indirect materials and utilities that increase with more production.