Which of the Following Is a Limitation of Using Newspapers

question 37

Multiple Choice

Which of the following is a limitation of using newspapers as an advertising medium? 

• A) occasional users of newspaper space pay higher rates 
• B) long lead times 
• C) not entertaining 
• D) rapidly escalating advertising cost 
• E) impersonal

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of output.

Excess Capacity

The situation where a company's production facilities can produce more goods than currently demanded by its market.

General Transfer-Prizing Rule

A principle used to determine the price at which goods and services should be transferred between departments within the same organization.

Opportunity Cost

The expense incurred by not choosing the second-best option available during a decision-making process.