If the NARB Rules Against an Advertiser, It Will

question 86

Multiple Choice

If the NARB rules against an advertiser, it will:

• A)order the firm to discontinue the ad in a manner similar to the consent order of the FTC.
• B)ask the firm to modify the ad or discontinue using it.
• C)refer the case to the FTC.
• D)refer the case to the NAD.

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Definitions:

Applied Factory Overhead

The allocation of manufacturing overhead costs to actual production, based on a predetermined rate or formula.

Continuous Process

A production process that operates continuously without interruption to manufacture products or process materials in an unending flow.

Work In Process

The cost of unfinished goods in the manufacturing process at a given time, including labor, material, and overhead.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the production cost.