Which of the Following Statements Is True of Digital Media

question 87

Multiple Choice

Which of the following statements is true of digital media?

• A)They make customer communications interactive.
• B)They limit a company's reach to new target markets.
• C)They limit marketers from utilizing new resources.
• D)They make communication complex and expensive.
• E)They limit consumers' access to information.

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Advertising Spending

The total amount of money that is allocated towards advertising products or services in various media outlets.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the degree of risk associated with falling sales.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, essentially calculating the portion of sales available to cover fixed expenses.