Using Share Points to Make Marketing Resource Allocation Decisions,marketing Managers

question 148

Multiple Choice

using share points to make marketing resource allocation decisions,marketing managers must estimate: (1) __________, (2) the revenues associated with each point of market, (3) the contribution to overhead and profit (or gross margin) of each share point,and (4) possible cannibalization effects on other products in the line.

• A) the market share for the product
• B) the number of market segments
• C) the total production costs
• D) the total financial resources available for a sustained marketing effort
• E) the stage of the product in its product life cycle

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of the variable overhead applied to a production process.

Variable Overhead Rate Variance

The difference between the actual variable overhead rate incurred and the expected (or standard) rate, multiplied by the actual activity level.

Variable Overhead Rate Variance

A measure used in managerial accounting to compare the actual variable overhead incurred to the expected overhead cost based on the standard cost system.

Indirect Labor

Labor costs related to tasks that support the production environment but are not directly involved in creating the final product.