An Apparel Manufacturer Decides to Create a Line of T-Shirts

question 155

Multiple Choice

An apparel manufacturer decides to create a line of T-shirts depicting the most popular soft drinks on the market.The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr.Pepper.What would this venture involve?

• A) line extension
• B) brand extension
• C) brand licensing
• D) brand marking

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, highlighting net profit or loss.

Variable Costing

An accounting method that only considers variable costs (costs that vary with production volume) in determining product costs and profitability.