Marisol Is Reviewing How to Re-Figure a Variety of Expenses

question 33

Multiple Choice

Marisol is reviewing how to re-figure a variety of expenses and costs associated with a recent marketing effort. Her first task is to identify the direct costs associated with that effort. Which of the following would be the best example of a direct cost associated with a marketing effort?

• A) rent
• B) sales commissions
• C) top management salaries
• D) interest on debt
• E) taxes

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Definitions:

Cyclical Stock

Equities whose prices are affected by macroeconomic, systemic changes in the economy, often correlated with economic cycles of expansion and recession.

Boom Economy

A period of significant economic growth, high employment, and increasing wealth.

Recessionary Period

A time of economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.