Which Statement Is Not True Concerning a Standard Test Market

question 64

Multiple Choice

Which statement is not true concerning a standard test market?

• A) One or more combinations of marketing mix variables (product, price, distribution, and promotional levels) are employed.
• B) Competitors often take actions such as increasing their promotional efforts to contaminate the test marketing program.
• C) While a firm's test marketing is in progress, competitors have an opportunity to beat it to the national market.
• D) All statements are correct.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods.

Manufacturing Overhead

The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and equipment depreciation.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or job orders, based on a selected activity base.

Direct Labor-Hours

The total number of labor hours spent on producing a single unit of a product or service.