Which of the Following Is a Strength of Advertising

question 89

Multiple Choice

Which of the following is a strength of advertising?

• A) It is the most inexpensive promotion tool.
• B) It reaches masses of geographically dispersed buyers at low cost per exposure
• C) It is impersonal and lacks the direct persuasiveness of company salespeople.
• D) It cannot trigger quick sales.
• E) It cannot be used to build up a long-term image for a product.

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Definitions:

Period Costs

Period costs are expenses that are not directly tied to the production of goods and are instead charged to the accounting period in which they are incurred, such as selling and administrative expenses.

Insurance Expense

The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.

Factory Building

A structure purposely designed and constructed for manufacturing operations, housing machinery, equipment, and workers.

Product Cost

The total expense incurred to produce a product, inclusive of direct materials, labor, and overhead costs.