Which of the Following Illustrates the Marketing Concept in Action

question 267

Multiple Choice

Which of the following illustrates the marketing concept in action?

• A) A young lawyer gives free legal advice to poor people.
• B) A local police department organizes a "community crime watch" program in a neighborhood that has had many burglaries.
• C) Several lawyers set up a group practice--so that the costs of the office and equipment can be shared.
• D) All of the above.
• E) None of the above has anything to do with the marketing concept.

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service pricing.

Idle Capacity

Unused production capability or facilities that could be used to produce more goods but are not currently being utilized due to lack of demand or efficiency.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total manufacturing overhead costs by the total allocation base for the entire plant.

Activity-based Costing

A method in accounting that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.