Marketing Analysts Working in the Wine Industry Have Observed That

question 67

Multiple Choice

Marketing analysts working in the wine industry have observed that Australians are drinking less wine in terms of volume, but are actually spending more on wine on an annual basis. This phenomenon has been widely interpreted as a shift to premium. That is, people are drinking less, but when they chose to drink they prefer to drink superior quality wines. This observation concerns changes in which environment?

• A) Demographic
• B) Natural
• C) Cultural
• D) Economic
• E) Political

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Definitions:

Manufacturing Cost

This encompasses the total expenses related to producing goods, including costs for materials, labor, and overhead.

Absorption Costing

A costing technique encompassing all expenses tied to production, including direct materials, direct labor, along with variable and fixed overhead costs, as part of a product's cost.

Variable Costing

An accounting approach where only variable costs are included in the cost of goods sold and fixed overhead costs are treated as period expenses.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.