A Marketing Manager Who Wants to Calculate the Cost of Marketing

question 78

Multiple Choice

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

• A) read all requisitions very carefully.
• B) allocate advertising expense to general overhead.
• C) reorganize some of the company`s functional cost accounts to natural accounts.
• D) reclassify all natural accounts into functional accounts.
• E) None of the above--it is impossible to link the costs of marketing to target markets.

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Definitions:

CCA Rate

Refers to Capital Cost Allowance rate, which is the rate at which a business can claim tax depreciation on certain properties or equipment in Canada.

CCA Class

Canadian Capital Cost Allowance Class; a categorization in Canadian tax law that determines the depreciation rate for tax purposes on different types of assets.

Required Rate

The lowest expected gain an investor aims to receive from an investment in a specific asset, taking into account the associated risk.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.