If Effective Reach And/or Effective Frequency Are Too High

question 39

Multiple Choice

If effective reach and/or effective frequency are too high:

• A)the company needs a larger advertising budget.
• B)the company spent all of its advertising budget.
• C)some of the company's budget is very likely being wasted on extra exposures.
• D)the company may need to choose additional media for future ads.

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Definitions:

Interest

The cost of using borrowed funds, or the return on invested funds, typically expressed as a percentage rate over a period of time.

Expense

A cost incurred in running a business by consuming goods or services in producing revenue. A subdivision of owner’s equity.

Liability

Financial debts or obligations that arise during the course of business operations, needing to be settled over time.

Bond Interest Expense

Represents the cost incurred by an entity for borrowing funds through the issuance of bonds, calculated as the bond's face value multiplied by the interest rate.