A Reminder Ad

question 28

Multiple Choice

A reminder ad

• A) reinforces previous knowledge of a product.
• B) states the position of a company on an issue.
• C) promotes a specific brand's features and benefits.
• D) tells people what a product is, what it can do, and where it can be found.
• E) shows one brand's strengths relative to those of competitors.

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Definitions:

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.

Variable Costing

A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.

Variable Overhead

Costs that change with the level of production or service activities.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.