Which of the Following Is a General Rule for How

question 54

Multiple Choice

Which of the following is a general rule for how promotions should be designed?

• A) to appeal to consumers only
• B) to appeal to channel members only
• C) to replace costly advertising
• D) to work independently of other brand communications
• E) to work within a mix of brand communications

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Definitions:

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.

Absorption Costing

A method of cost accounting that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Cost Behavior

The way in which a cost reacts or changes when there is a change in the level of business activity.

Variable Costing Format

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.