In the Marginal Analysis Approach to Media Budgeting, All of the Following

question 75

Multiple Choice

In the marginal analysis approach to media budgeting, all of the following should be considered EXCEPT:

• A) advertising expenditures and other variable costs
• B) fixed costs of advertising
• C) sales
• D) gross margin net worth

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Definitions:

Materials Price Variance

The variance between the real expenses incurred from direct materials in manufacturing and the anticipated standard cost of those materials.

Labor Rate Variance

The discrepancy between what labor actually costs and what was originally forecasted or considered standard.

Variable Manufacturing

Costs that change in direct proportion to changes in the volume of production output.

Labor Rate Variance

A measure used in managerial accounting to assess the difference between the actual wage rates paid to workers and the expected standard wage rates for a period.