Which of the Following Is Correct with Regard to the Elements

question 172

Multiple Choice

Which of the following is correct with regard to the elements in the marketing mix?

• A) Of the four elements, "product" is generally least important.
• B) The elements are all equally important, regardless of the product being sold.
• C) Price plays a small role in fresh meat, but a relatively larger role in selling newspapers.
• D) Distribution is not very important in marketing gasoline, but it is important for lumber.
• E) Promotion is vital in selling toys, but much less important in selling nails.

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total base units used by all products, applied throughout the entire manufacturing plant.

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.

Machine Hours

A metric used in manufacturing to allocate costs based on the number of hours a machine is operated.

Indirect Labor

Labor costs of employees who do not directly work on a product, but whose services are necessary for the manufacturing process.