In the Long Run,products Fail Because of a Poor Match

question 13

Multiple Choice

In the long run,products fail because of a poor match between which of the following?

• A) prices and consumer demand
• B) product characteristics and consumer needs
• C) advertising and personal selling
• D) the marketing mix and physical distribution

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Definitions:

Fixed Costs

A repetitive charge that does not fluctuate with the volume of business activity, including expenses like lease payments and utility bills.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Costing Income Statement

A financial statement that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold and separates fixed overhead costs as period costs.

Electricity

The cost associated with the consumption of electrical power used in business operations or manufacturing processes.