Which of the Following Is True of Test Marketing

question 6

Multiple Choice

Which of the following is true of test marketing?

• A)It is used to test advertising effects in specific target areas.
• B)The disadvantage of test marketing of ads is its unrealism.
• C)A high degree of control cannot be obtained through test marketing.
• D)The effectiveness is measured while the ads are being run.
• E)It favors unemotional appeals because respondents are asked to verbalize the message.

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Definitions:

Variable Overhead Rate

The rate at which variable overhead costs are allocated to each unit of production, which may vary with the level of output.

Direct Labor-Hours

Overall employment hours dedicated directly to the manufacturing operation.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, calculated based on hours worked and wage rates.

Labor Standards

Standards specifying the amount of time needed to complete a specific task or produce a set quantity of products.