If a Company's Media Budget Numbers Are 85-10-5 and Uses

question 119

Multiple Choice

If a company's media budget numbers are 85-10-5 and uses an external ad agency, this means the company:

• A)is spending too much money on creative work.
• B)should continue using an external advertising agency.
• C)should discontinue using an external agency and perform the work in-house.
• D)is spending too much money on media buys.

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Definitions:

Cost of Goods Completed

This term refers to the total cost incurred to manufacture products that have been completed during a specific period.

Processing Department

A division within a factory where a specific type of production activity or process takes place.

Work in Process

Inventory category referring to goods that are in the process of being manufactured but are not yet completed.

Process Costing

Process costing is a method of assigning production costs to units of output in industries where the products are indistinguishable from each other and produced in a continuous process.