When Fizzy Cola Advertizes That It Will Donate a Portion

question 10

Multiple Choice

When Fizzy Cola advertizes that it will donate a portion of all the proceeds of cola packaged in its Olympic can to the Special Olympics, it is engaging in ________.

• A) buzz marketing
• B) stimulus generalization
• C) viral marketing
• D) deceptive advertising
• E) cause-related marketing

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Definitions:

Unfavorable

A term used to describe a variance or outcome that results in a worse financial position than expected or budgeted.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs, often due to paying a higher or lower wage rate than planned.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead allocated based on activity levels.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labor rate.