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Scenario 2-3 ABC Television Network Notified the Miss America Organization That It

question 36

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Scenario 2-3
ABC television network notified the Miss America Organization that it would not pick up the show for broadcast in 2005, leaving the pageant without a major broadcast outlet for the first time in 50 years. The news cannot have come as a shock to the Miss America Organization. A little more than a decade ago, the competition that started as an Atlantic City publicity stunt had grown to about 27 million viewers; in 2004, it drew a record-low 9.8 million, with the median age of the Miss America audience at 51. ABC paid $5.6 million for broadcast rights to the pageant in 2003. ABC, which took over the pageant after 30-year sponsor NBC bowed out, was not doing Miss America any favors airing it on Saturdays -- a low-viewership night. ("No More Miss America Pageantry for ABC," Washington Post.com, Lisa de Moraes,
October 21, 2004)
-(Scenario 2-3) The pageant's board of directors has come to the realization that the one night event is the only aspect that the general public equates to the Miss America contest. In reality, the event lasts year round with pageants in all fifty states during the year leading up to the nationally televised event. The board has selected a new full-service agency to tie all the events together in a cohesive marketing program including an interactive component. To do this, the agency will focus on:

Definitions:

Periodic Inventory System

A method of inventory valuation where updates to inventory records are made at specified periods, rather than continuously.

FIFO

"First-In, First-Out," an inventory valuation method where the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Average Cost

A calculation that divides the total cost of goods available for sale by the total units available for sale, offering a way to determine the cost of an item's inventory.