If an Advertisement Costs $200,000, the Number of Viewers Is

question 158

Multiple Choice

If an advertisement costs $200,000, the number of viewers is 2,000,000, and the rating is 2.0, then the cost per rating point (CPRP) is:

• A) $100
• B) $1,000
• C) $10,000
• D) $100,000

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Definitions:

Cost Object

Anything for which a separate measurement of costs is desired, including products, services, projects, activities, or customers.

Management Interest

The concern or focus areas of organizational managers, particularly regarding strategy, operations, and achieving objectives.

Cost Pool

A grouping of individual costs typically associated with manufacturing processes, designed to simplify the allocation of overheads to products or services.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant or facility to allocate indirect costs to products.