One Advantage of Using the Internet as an Advertising Medium

question 59

Multiple Choice

One advantage of using the Internet as an advertising medium is that

• A) there is no need to segment markets.
• B) it has video and audio capabilities similar to television.
• C) there are no real costs except computers used for initial encoding.
• D) online ads almost always result in a "click," an action that leads to the purchasing of a product.
• E) there is a long life span for the ads.

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Definitions:

Annual Depreciation

The process of allocating the cost of a tangible asset over its useful life on a yearly basis.

Useful Service Life

The estimated period over which a fixed asset is expected to be usable by the company.

Straight-line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.

Depreciable Assets

Assets whose cost is allocated over their useful lives due to usage, wear and tear, or obsolescence.