Which of the Following Is True of the Cost Per

question 23

Multiple Choice

Which of the following is true of the cost per thousand (CPM) measure of efficiency in the advertising industry?

• A) It refers to the dollar cost of reaching thousand prospects.
• B) Its chief disadvantage relates to its complexity.
• C) It does not allow for a common base of comparison between differing media types.
• D) It strongly discounts the positive effects theory.

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Definitions:

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue source for most businesses.

Operating Income

Earnings from a company's main business activities, excluding expenses like interest and taxes.

Operating Expenses

Operating expenses are the costs associated with running a company's core business operations, excluding the cost of goods sold, such as rent, utilities, and payroll.

Merchandising Business

A type of business that purchases goods and sells them at a higher price without changing their form.