Changing an Image Is Most Necessary When

question 146

Multiple Choice

Changing an image is most necessary when:

• A) a brand's image has been adversely impacted by entry of new competitors.
• B) when sales begin to decline.
• C) when target markets shrink or disappear or a firm's image no longer matches industry trends and consumer expectations.
• D) when a competitor enters the market with a product that is viewed as being superior.

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Definitions:

Product Costs

The costs that are directly associated with the manufacturing of products, including direct labor, materials, and manufacturing overhead.

Variable Cost

Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.

Contribution Margin

The remaining amount of revenue after variable costs have been subtracted, indicating how much revenue is contributing to fixed costs and profits.

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of output, excluding fixed costs.