Which of the Following Factors Make It Difficult for Companies

question 36

Multiple Choice

Which of the following factors make it difficult for companies with small advertising budgets to use television as part of their media mix?

• A) the fact that television programs do not reach their target markets
• B) the fact that small ad agencies generally do not know how to produce TV commercials
• C) the high costs of producing and airing television commercials
• D) the limited creative options available through television

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Definitions:

Factory Overhead Applied

Costs associated with the production process that are not directly tied to a specific product, such as depreciation or utilities, allocated to products based on a systematic approach.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a particular activity (e.g., machine hours, labor hours).

Direct Material Cost

The expense of raw materials and components directly used in the production of a product.

Overhead Rate

A calculation used to allocate overhead costs to produced goods or services, often based on direct labor hours or machine hours.