Advertising Via the Internet Is Appealing Because This Medium

question 40

Multiple Choice

Advertising via the Internet is appealing because this medium

• A) has demonstrated that it is effective in attracting potential customers.
• B) offers an intense one-way transfer of information.
• C) is available 24 hours a day.
• D) is a reliable way of getting a firm's message out.

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Definitions:

Gross Margin

The difference between sales revenue and cost of goods sold, representing the fundamental profit derived from trading activities, before deduction of operating expenses.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

A calculation approach that encompasses all expenses of production, such as materials, labor, and all overheads, both variable and fixed, in determining a product's price.