The Cost Per Thousand (CPM) Indicator Shows

question 179

Multiple Choice

The cost per thousand (CPM) indicator shows

• A) the cost to expose 1,000 people to a television commercial.
• B) the cost to expose 1,000 people to a one-page magazine advertisement.
• C) the return on investment marketers get for their advertising dollar.
• D) the cost to expose a million people to any type of advertisement.
• E) how one media source compares to a different source for reaching target markets.

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Definitions:

Purchase Accounting Method

A set of accounting techniques used to assess the acquisitions of assets, liabilities, and non-controlling interests of a company.

Goodwill

An intangible asset that arises when a business is acquired for more than the sum of the fair value of its identifiable net assets.

Annual Impairment Test

A review conducted yearly to determine if an asset's carrying value exceeds its recoverable amount, leading to an adjustment if necessary.

Tax-loss Carryforwards

A provision in the tax code that allows an individual or company to use losses from one year to offset future profits for tax purposes.