The Cost of Public Relations Is

question 60

Multiple Choice

The cost of public relations is:

• A)generally not considered as a part of the marketing budget.
• B)very low in both relative and absolute terms.
• C)very high in relative terms and very low in absolute terms.
• D)very low in relative terms and very high in absolute terms.
• E)not easy to determine as it fluctuates across initiatives.

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Definitions:

Variable Manufacturing Cost

Costs that vary in direct proportion to changes in production volume, such as raw materials and direct labor.

Variable Selling Cost

Variable selling costs fluctuate with sales volume; they include expenses such as commission and shipping that increase with higher sales.

Constrained Resource

A limited resource within a system that significantly affects the throughput or output of the system.

Special Order

A special order refers to a one-time purchase order often at a discounted price, usually for large quantities that is outside the normal scope of operations.