Rackspace U

question 281

Multiple Choice

Rackspace U.S. Inc. is a web hosting company. If you want a website, you can buy Internet space as well as technical support and design services from the company. When current users are targeted with an ad explaining that its clients consider Rackspace "the risk-free host because it offers dedicated and helpful support any time day or night," Rackspace is most likely trying to

• A) identify its core values.
• B) reduce buyers' cognitive dissonance.
• C) simplify new buyers' evaluative criteria.
• D) produce a consideration set.
• E) evoke problem recognition.

---

Definitions:

Activity-Based Costing

A costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Overhead Cost

Expenses not directly tied to production but necessary for running the business, such as rent, utilities, and salaries for administrative staff.

Activity-Based Costing

An accounting method that apportions overhead and incidental costs to the respective products and services based on the specific activities involved.

Worker Recreational Facilities

Facilities provided by employers for employees' relaxation and leisure, aiming to improve morale and productivity.