Although Ads Can Be Tested Prior to Production, Most Advertising

question 131

Multiple Choice

Although ads can be tested prior to production, most advertising agencies perform little pretesting because pretests:

• A) tend to be unreliable
• B) are too expensive
• C) are not requested very often by clients
• D) have to be matched with posttests to be effective

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Definitions:

Conversion Cost

The combination of direct labor and manufacturing overhead costs required to convert raw materials into finished products.

Molding Department

A specific section within a manufacturing facility where the process of shaping materials into desired forms through various molding techniques occurs.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on a weighted average of the costs.

Materials Cost

Refers to the expense incurred in acquiring the raw materials used in the production of goods or services, excluding labor and indirect costs.