Which of the Following Would NOT Be True of Testimonials

question 64

Multiple Choice

Which of the following would NOT be true of testimonials?

• A)The heart of this technique depends on having a sports star, entertainment personality, or acknowledged expert endorse a brand.
• B)People like to identify with role models.
• C)Personalities who knowingly engage in deception are not liable, only the advertiser is.
• D)People like to identify with celebrities and role models.
• E)The personality must have actually used the product or service at the time of the testimonial.

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Definitions:

Fixed Budget

A budget that remains constant regardless of changes in the level of activity or volume, typically used for planning purposes.

Variable Costs

Outlays that fluctuate according to the amount of production or volume of sales.

Flexible Budget Performance Report

A report comparing actual operating results to a budget that adjusts with changes in the volume of activity.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profit.