Which of the Following Statements by Marketing Managers Is NOT

question 235

Multiple Choice

Which of the following statements by marketing managers is NOT logical and true?

• A) "We are planning to appeal more to Hispanic consumers, since this group has surged and is now over 15 percent of the population."
• B) "We're building supermarkets that will appeal to Hispanic consumers; it's a big investment, but the Hispanic population in the U.S. spends nearly $1 trillion a year."
• C) "We are adapting our diaper promotion to target African American and Hispanic parents, since the birthrate in those groups is higher than for whites."
• D) "We will target Asian Americans in California, New York, and Texas since over half of their population in the U.S. is concentrated in those three states."
• E) "We are going to appeal to the African American group because it is a large, homogeneous target market."

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Definitions:

Variable Costing

An accounting method that considers only variable production costs (such as materials and labor) in the calculation of product costs.

Net Operating Income

The profit derived from a company's regular business operations after deducting operating expenses such as rent, wages, and utilities.

Direct Labor Cost

The total cost of workforce expenses directly involved in the manufacturing of products or delivery of services, excluding indirect labor costs.

Absorption Costing

A costing methodology in accounting that factors in all costs associated with manufacturing, such as direct materials, direct labor, along with both variable and fixed overheads, into the product's cost.