Using a Brand Name on a Variety of Related Products

question 30

Multiple Choice

Using a brand name on a variety of related products is known as ________.

• A) brand filling
• B) brand extension
• C) line extension
• D) family branding
• E) brand stretching

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Definitions:

Joint Products

Products that are produced from the same process or raw materials, often with little to no variation in cost until the split-off point, where they may be further processed differently.

Net Realizable Value Method

An accounting method used to value inventory or accounts receivable at the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

Market Value at Split-Off Method

A method used to allocate joint costs based on the market value of products at the point of separation in a production process.

Joint Costs

Joint costs are costs incurred during the process of producing two or more products simultaneously, where such costs cannot be easily attributed to each product individually.