________ Occurs When a Company Introduces Additional Items in a Given

question 110

Multiple Choice

________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.

• A) Line extension
• B) Megabranding
• C) Interactive marketing
• D) Internal marketing
• E) Co-branding

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Definitions:

Factory Overhead Costs

Expenses related to the day-to-day operations of a factory that are not directly tied to a specific product, such as utilities, depreciation, and maintenance.

Period Costs

Expenses that are recognized in the income statement when incurred, instead of being tied to inventory, include utilities and rent for office space.

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales staff salaries, and commission.

Administrative Expenses

Expenses that relate to the general operation of a company and do not directly tie to production activities, such as office supplies and salaries of administrative personnel.