At the De Beers Website, Users Can Design Their Own

question 221

Multiple Choice

At the De Beers website, users can design their own rings and show them to others. One out of five website visitors e-mail their ring design to friends and relatives who may then visit the site. De Beers is using ________ to promote its diamonds.

• A) opt-in marketing
• B) customerization
• C) stealth marketing
• D) buzz marketing
• E) viral marketing

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Definitions:

Equivalent Unit

A measure used in process costing that converts partially completed units into a smaller number of fully completed units.

Conversion Costs

The combined cost of direct labor and manufacturing overheads involved in converting raw materials into finished goods.

Weighted-Average Cost Method

A costing method that assigns the cost of inventory based on the average cost of all similar items in the inventory, regardless of when they were purchased.

Blending Department

A part of a manufacturing process where ingredients are combined according to specific recipes to produce a final product.