What Is Calculated by Dividing the Cost of an Ad

question 132

Multiple Choice

What is calculated by dividing the cost of an ad placed in a particular ad vehicle by the number of people who are exposed to that vehicle?

• A) Cost per single source
• B) Cost per thousand
• C) Selectivity cost
• D) Advertising cost

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Definitions:

Payables Deferral Period

The average time between the purchase of goods or services by a company and the payment of this outstanding money to its suppliers.

Cash Conversion Cycle

The length of time between the firm’s actual cash expenditures on productive resources (materials and labour) and its own cash receipts from the sale of products (i.e., the length of time between paying for labour and materials and collecting on receivables). Thus, the cash conversion cycle equals the length of time the firm has funds tied up in current assets.

Accounts Payable

Accounts Payable is the amount of money owed by a company to its creditors for goods and services purchased on credit.

Financial Cost

Expenses associated with borrowing funds or purchasing on credit, including interest expenses, fees, and other charges.