One of the Problems with ROMI Is That It Often

question 44

Multiple Choice

One of the problems with ROMI is that it often focuses on ________ rather than looking at the effects or changes in brand equity.

• A) long-term strategic goals
• B) short-term incremental profits and expenditures
• C) long-term relationship marketing goals
• D) short-term tactical perspective
• E) short-term target marketing goals

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Definitions:

Traditional Costing Method

A costing methodology that allocates overhead costs based on a single, volume-based cost driver, such as labor hours or machine hours.

Direct Labor-Hours

The total time workers spend on producing a product, directly correlating to the product itself.

Unit Product Cost

An expression of the total production cost (materials, labor, and overhead) divided by the number of units produced.

Traditional Costing Method

An accounting strategy that allocates overhead costs to products based on a predetermined rate, without considering the actual activities that incur costs.