To Address the Problem of Young Children Confusing Program and Ad

question 18

Multiple Choice

To address the problem of young children confusing program and ad content,both the FTC and FCC have recommended that

• A) ads contain wording saying that they are advertisements.
• B) ads on Saturday morning be less persuasive so that less purchase pressure is placed on parents.
• C) television stations use a separator between the program and the ad.
• D) ads on Saturday morning not contain characters from any recent movies.
• E) ads directed at young children not contain any serious informational content.

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Definitions:

Absorption Costing

Absorption costing is an accounting method where all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) are included in the cost of a produced unit.

Profits

The financial gain calculated by subtracting total expenses from total revenue.

Units Produced

The total number of finished products that a company manufactures during a specific period.

Variable Costing

A method of costing that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and treats fixed manufacturing overhead as a period expense.