A Tool That Allows an Advertiser to Compare the Costs

question 90

Multiple Choice

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n)

• A) cost comparison indicator.
• B) media comparison selector.
• C) unit-price selector.
• D) cost/person index.
• E) vehicle/price indicator.

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Definitions:

Carrying Costs

Expenses associated with maintaining inventory, including storage, insurance, and spoilage costs.

Ordering Costs

Expenses incurred in placing and receiving orders for goods, including transportation, handling, and clerical costs.

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.