The Ad from Salesgenie

question 30

Multiple Choice

The ad from Salesgenie.com that depicted two animated pandas who spoke in heavy Chinese accents was pulled because its use of ___________ was seen to be offensive.

• A) vulnerable consumers
• B) country-of-origin associations
• C) racial profiling
• D) ethnic stereotypes

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Definitions:

Variable Costing

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

Absorption Costing

A product costing technique that adds up all manufacturing expenses — direct materials, direct labor, variable, and fixed overheads — into the comprehensive cost of the product.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues.

Variable Costing

A costing method in which all variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) are treated as product costs, while fixed overhead is treated as a period cost.