One of the World's Largest Publishers Was Totally Unprepared for Recent

question 264

Multiple Choice

One of the world's largest publishers was totally unprepared for recent increases in the demand for digital books.During 2011,the sale of e-books exceeded the sales of traditional printed paperback books for the first time.If the publisher had __________,it would have been more prepared for this shift in its marketing environment.

• A)optimized its distribution by eliminating local and chain store bookstores (like Borders)that failed to meet their sales quotas
• B)noticed the change in the demographics of book readers in general
• C)noticed the behavioral changes in moviegoers,who now prefer to view 2D and 3D movies in IMAX theaters
• D)shifted funds from product development to advertising
• E)tracked,as part of its ongoing environmental scanning activities,the sales of e-books sold by other publishers as well as e-book readers sold by Amazon.com (Kindle),Barnes and Noble (Nook),and Apple (iPad)

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Definitions:

Common Fixed Expenses

Common fixed expenses are costs that remain constant in total regardless of changes in the level of activity or volume, such as rent and salaries, shared across departments or projects.

Net Operating Income

Represents the profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Salaried Estimator

A professional responsible for assessing project costs, often receiving a fixed regular payment regardless of hours worked.

Absorption Costing

Absorption costing is a financial approach that integrates all production expenses, including direct materials, direct labor, and all overhead costs, both variable and fixed, into the product's cost.