Price-Based Consumer Promotions Are Normally Designed To

question 102

Multiple Choice

Price-based consumer promotions are normally designed to:

• A) build brand image
• B) support a push strategy by the manufacturer
• C) attract new customers and to build sales
• D) motivate retailers to support the consumer promotion program

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Definitions:

Cost Driver

A factor that causes a change in the cost of an activity or product.

Cost Allocation Process

The procedure of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.

Journal Entries

Records of financial transactions in the double-entry bookkeeping system, indicating the accounts and amounts to be debited and credited.

Reciprocal Services Method

An approach used to allocate costs between different departments within a company that provide services to each other, maintaining a balanced internal economy.