If an Advertisement Costs $200,000, the Number of Viewers Is

question 175

Multiple Choice

If an advertisement costs $200,000, the number of viewers is 2,000,000, and the rating is 2.0, then the cost per rating point is:

• A)$100.
• B)$1,000.
• C)$10,000.
• D)$100,000.

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Definitions:

Direct Materials Costs

The expenses for raw materials that are directly used in the production of a product.

Activity Cost Pools

A method in activity-based costing that aggregates all indirect costs associated with a particular activity, allowing for more precise allocation of overheads to products or services.

Organization-Sustaining Activities

Activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.

First-Stage Allocations

The process of assigning overhead costs to different departments or cost pools as a first step in allocating costs to individual products or services.