Suppose That Nike Wanted to Use Facebook to Increase Awareness

question 36

Multiple Choice

Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles?

• A) Uploading a coupon to the Nike fan page
• B) Encouraging Facebook users to like the Nike page so their friends will see this action
• C) Placing a Facebook ad
• D) Creating a Facebook tab allowing users to view the tennis clothing within Facebook
• E) Placing a Facebook link on the Nike corporate website

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to assign manufacturing overhead costs to products based on a relevant activity base.

Manufacturing Overhead Applied

The portion of manufacturing overhead costs allocated to each unit of production based on a predetermined rate.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Underapplied

Refers to a situation where the allocated manufacturing costs are less than the actual manufacturing costs incurred.