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Scenario 1-2
Chug Enterprises is considering entering the already-crowded sports drink market with a line of products.The first brand will be advertised to teenagers as being the best-tasting sports drink on the market.The second brand will be advertised to adults as being the lowest calorie sports drink you can buy.The third brand will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure.Each brand will have separate, distinctive packaging.However, the drinks inside are actually identical to one another.
-(Scenario 1-2) To help build brand awareness, preference and loyalty, Chug Enterprises plans a coordinated campaign using a variety of promotional tools including advertising.This process of combining coordinated communication to help customers identify and evaluate the relevance of Chug Enterprises products to their lives and value systems is considered
Nonmanufacturing Costs
Expenses not directly related to the production of goods, including sales, administration, and marketing costs.
Depreciation Factory Equipment
The systematic reduction in the recorded cost of factory equipment over its useful life, reflecting wear and tear or obsolescence.
Utility Costs Factory
The expenses for utilities (electricity, gas, water, etc.) incurred in the operation of a manufacturing plant or facility.
Product Costs
Costs that are directly associated with the manufacturing of goods, including materials, labor, and overhead.
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