Test Marketing Involves

question 18

Multiple Choice

Test marketing involves:

• A) putting product into an existing outlet.
• B) sending surveys to a significant number of customers in the industry.
• C) asking potential customers how much they would pay for the product.
• D) simulating an actual market situation.

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Definitions:

Materials Quantity Variance

The gap between the actual and expected quantities of materials used in production, with each difference multiplied by the standard unit cost.

Raw Materials Purchase

The acquisition of basic materials needed for the production of goods, a critical input in the manufacturing process.

Raw Materials Inventory

The stock of basic materials that are required to manufacture goods, held by a company awaiting to be used in the production process.

Raw Materials Purchases

Refers to the total cost of all raw materials bought by a company over a specific period for use in its production process.