Marketing Director Schultz Must Inform the Board of Directors That

question 66

Multiple Choice

Marketing Director Schultz must inform the board of directors that customers are not responding positively to the company's new advertising campaign. Which of the following sentences would be the most appropriate wording for the marketing director to use in her message to the board of directors?

• A) Our customers are ripping on our new ads, even though we know these ads rock!
• B) Our customers are badmouthing this awesome new marketing campaign; they are obviously just out of it.
• C) We have received reports from customers about our new ads.
• D) It has come to my attention that our customers have denigrated the strategic implementation of our new ad campaign.

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Definitions:

Direct Material Price Variance

The difference between the actual cost of direct materials used and the expected (or standard) cost, which can indicate efficiency in purchasing materials.

Standard Costing

A cost accounting method that uses standard costs for direct materials, labor, and overhead to help managers control costs by comparing expected costs to actual costs.

Isolating Variances

A process in managerial accounting for identifying and analyzing differences between actual and expected performance.

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.