Scenario 10-6 Jostens Manufactures Products for High Schools and Colleges That Serve

question 30

Multiple Choice

Scenario 10-6
Jostens manufactures products for high schools and colleges that serve as memories for students and their loved ones. These products include yearbooks, class rings, graduation announcements, and several other related items. Traditionally, these products have been sold by Jostens sales representatives into individual schools. Recently, the company has decided to develop a marketing database of the names of students and parents in key school districts and at certain colleges and universities. The databases begin with basic demographic information, including names of younger siblings, that is sold to Jostens by school district offices and college admissions offices. With this information, Jostens hopes to begin a direct marketing effort whereby students and their parents receive marketing materials at their homes direct from the company.
-(Scenario 10-6) Jostens' marketing research has found that high school student consumers are favorably disposed to a direct marketing campaign via email for the Jostens products. Which of the factors below must Jostens take pains to avoid?

• A) It will reach people with no interest in graduation memorabilia
• B) It will be considered "spam"
• C) It will cost more than an infomercial costs to produce and air
• D) None of these factors are problems with the email approach

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Definitions:

Ending Retained Earnings

The portion of net income left after dividends have been distributed to shareholders, reflected at the end of an accounting period.

Work Sheet

A work sheet is an informal business document used for preparing financial statements and facilitating the end-of-period accounting process, often in an Excel spreadsheet or similar format.

Adjusting Entries

These are journal entries made in an accounting system to update account balances prior to preparing financial statements, ensuring that all revenues and expenses are recorded in the appropriate periods.

Work Sheet

An informal financial statement usually used internally to prepare financial statements and support accounting operations.