In the Opening Vignette the Bank of New Zealand Constructed

question 27

Multiple Choice

In the opening vignette the Bank of New Zealand constructed a popular direct marketing campaign called "Body Parts" to appeal to students' desire to get something. What did they ultimately decide would really appeal to students?

• A)MP3 players
• B)"Signon" bonuses
• C)Cash
• D)Discounts and free stuff year round

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Definitions:

Variable To Fixed Costs

The process of converting costs that vary with production volumes into costs that remain constant regardless of volume.

Direct Labor

Workers or employees who are directly involved in the production of goods or services, whose labor can be easily traced to the product.

Committed Fixed Costs

Long-term fixed costs that cannot be easily altered in the short term, such as leases, depreciation on equipment, and salaries of permanent employees.

Short Run

A period in which at least one factor of production is fixed, allowing limited adjustments to production or operational levels.