Diana's Supervisor Is Pressuring Her to Figure Out a Value

question 44

Multiple Choice

Diana's supervisor is pressuring her to figure out a value for publicity she earned. Why should she not use the advertising value equivalency (AVE) metric?

• A) Proper evaluation of PR requires more careful thinking about the effects of communication than figuring out what media coverage would have cost if you paid for the space it occupies.
• B) Some publications are not honest about reporting the costs and circulations of their outlets, so this is not a trustworthy metric.
• C) The calculations required would be too time consuming to provide useful insight.
• D) The cost per thousand metric is more universal for measuring public relations value and something every PR professional uses instead.

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Definitions:

Cost of Goods Sold

The total cost directly associated with producing goods that have been sold during a specific period.

Direct Material Purchased

The total quantity and cost of raw materials acquired for use in the production process.

Accounting Records

Documentation and books that systematically and comprehensively record the financial transactions of an entity, allowing for financial tracking and reporting.

Unadjusted Cost

refers to the original cost of an asset or expense without any adjustments for depreciation, amortization, or impairments.