A Business Hopes to Generate Large Online Sales Through Posting

question 53

Multiple Choice

A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale.That firm should use the performance measure of

• A)"cost per thousand," and pay $0.50 for every time an ad loads,up to $100 per month.
• B)a "negotiated measure," and pay $100 to post their ad for two weeks.
• C)"cost per click," and pay $0.50 for every visitor who clicks on the ad and goes to their website.
• D)"cost per action," and pay $50 for every purchase that originated from an ad on the site.
• E)"cost per like," and pay $1.00 for every unique visitor who likes the advertised product.

Calculate ending balances in the Raw Materials and Work in Process accounts, considering transactions recorded.

Understand and apply the principles of standard costing in manufacturing.

Calculate and analyze direct materials variances.

Calculate and analyze direct labor variances.

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Definitions:

Cost of Goods Available

The total cost of all goods a company has available for sale at the end of a period, including both beginning inventory and goods produced or purchased during the period.

Schedule

A timetable for when events are to happen or tasks are to be completed.

Total Manufacturing Cost

The sum of all costs directly related to the production of goods, including raw materials, direct labor, and manufacturing overhead.

Schedule

A detailed plan outlining the timing and sequence of actions or events.