Even When a Specific Campaign Fails to Break Even in the Short

question 96

Multiple Choice

Even when a specific campaign fails to break even in the short run,it can still be profitable in the long run if ________ is/are factored in.

• A) customer lifetime value
• B) sales-force promotions
• C) price escalation effects
• D) indirect revenues
• E) all of the above

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Definitions:

Batch-level Costs

Expenses that are incurred for every batch produced, regardless of the size of the batch, such as setup costs or inspection fees.

Overhead Allocation Methods

Techniques used to assign indirect costs to products, services, or departments, helping in accurately reflecting production costs.

Overhead Rate

Refers to the cost of running a business that cannot be directly attributed to a specific product or service, often expressed as a percentage of labor or material costs.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.