When Television Stations Sell Advertising Time Based on Age Categories

question 38

Multiple Choice

When television stations sell advertising time based on age categories of viewers, they are using ___________segmentation.

• A) behaviouristic
• B) geographic
• C) demographic
• D) psychographic

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Definitions:

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Fixed Manufacturing Overhead

The set costs associated with producing goods that do not change with the level of output, including salaries, rent, and insurance.

Net Operating Income

A financial metric that shows the profitability of a company's core business activities, excluding the effects of financing and investment income.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for traceable costs and expenses.