3.9-4.3

Question 1

Both profit centers and cost centers can be organized in a business by:

Answer 1

Function

Product

Geography

Question 2

The role of profit centers and cost centers is:

Answer 2

Organizational

Motivational

Financial

Question 3

When constructing a budget, managers need to be

Answer 3

Forward-looking

Not too optimistic

Flexible

Question 4

People tend to underestimate the likelihood of negative events

Answer 4

Optimism bias

Question 5

People generally underestimate the amount of time a task will take

Answer 5

Planning fallacy

Question 6

Actual income lower than budget is a ____ variance.

Answer 6

adverse

Question 7

Variance analysis compares the forecast (future) with the actual (past).

Answer 7

true

Question 8

Which of the following adverse variances might be favorable when considering the context?

Answer 8

Actual variable costs greater than budget due to increased sales.

Question 9

If the budget for staffing costs is $35,500 and the actual staffing cost is $31,800, the variance is:

Answer 9

Favorable

Question 10

Which of the following is a benefit of budgeting?

Answer 10

Motivation

Coordination

Communication

Question 11

A situation where the sole focus of a business is on the needs and wants of a market segment.

Answer 11

Market orientation

Question 12

The product or brand with the highest market share.

Answer 12

Market leader

Question 13

The increase in sales revenues or sales volume in an individual market over time.

Answer 13

Market growth

Question 14

The value of a single company’s sales or revenues compared with the sales of all businesses in a market.

Answer 14

Market share

Question 15

An element of the services part of the marketing mix related to the activities needed in the interaction between the customer and the business.

Answer 15

Process

Question 16

An element of the marketing mix related to all the sensory elements that the customer sees, smells, hears and touches when interacting with a business.

Answer 16

Physical evidence

Question 17

Those who are involved in offering a service; an element of the marketing mix.

Answer 17

People

Question 18

Part of the marketing mix related to advertising, sponsorships, sales promotion, or other tactics to inform and persuade customers to buy a product.

Answer 18

Promotion

Question 19

Market share: high, Market growth: high

Answer 19

Stars

Question 20

Market share: low, Market growth: high

Answer 20

Problem childs

Question 21

Market share: high, Market growth: low

Answer 21

Cash cows

Question 22

Market share can be measured as % of revenue dollars or volume (units) sold.

Answer 22

True

Question 23

Market share: low, Market growth: low

Answer 23

Dogs

Question 24

What is an advantage of market orientation?

Answer 24

Low risk

Question 25

The term "market" means:

Answer 25

A type of product A location A place where buyers and sellers come together or interact

Question 25

What is an advantage of product orientation?

Answer 25

Unique selling point

Question 26

A strategy where a business is producing a specialised or differentiated product for a niche market; one of Porter's Generic Strategies.

Answer 26

Differentiation focus strategy

Question 27

A situation where a business becomes the low-cost producer in a niche market; one of Porter's Generic Strategies.

Answer 27

Cost focus strategy

Question 28

A strategy where a business is producing a specialised or differentiated product for a broad market; one of Porter's Generic Strategies.

Answer 28

Differentiation strategy

Question 29

A situation where a business becomes the low-cost producer in the industry; one of Porter's Generic Strategies.

Answer 29

Cost leadership strategy

Question 30

The decisions of a business regarding its product, price, promotion, place, people, processes and physical evidence.

Answer 30

Marketing mix

Question 31

Gathering information to support marketing decisions.

Answer 31

Market research

Question 32

A document that outlines a company's entire marketing process.

Answer 32

Marketing plan

Question 33

All the processes involved in identifying and satisfying customer needs

Answer 33

Marketing

Question 34

The process of highlighting the differences between a product and its rivals.

Answer 34

Differentiation

Question 35

Distinguishing a brand from its competitors.

Answer 35

Product positioning

Question 36

Selecting the most appropriate market segment for a marketing campaign.

Answer 36

Targeting

Question 37

Which of the following is a method of setting a marketing budget?

Answer 37

Objective based Sales based Incremental based

Question 38

Which of the following is one of the seven P's of the marketing mix?

Answer 38

Physical evidence Price Processes

Question 39

Which of the following is a method of segmentation of a market?

Answer 39

Psychographic Demographic Geographic

Question 40

Which of the following is an example of a niche-market product?

Answer 40

Cartier Louis Vuitton Lamborghini

Question 41

Which of the following is an example of a mass-market product?

Answer 41

Oreo Dove Colgate

Question 42

Calculating a moving average enables a business to:

Answer 42

Smooth out extreme variations in data

Question 43

Which of the following methods can businesses use to predict sales?

Answer 43

Product life cycle analysis Market research statistics Causal models

Question 44

A forecasting method used by businesses to identify trends using past data and extending this information and trend to predict future data.

Answer 44

Extrapolation

Question 45

A quantitative representation of real-world business dynamics, showing the causal relationship between an independent and dependent variable.

Answer 45

Causal model

Question 46

A statistical technique used by businesses to identify trends in historical data, such as sales revenue figures of previous years recorded at proper intervals in the past.

Answer 46

Time series analysis

Question 47

Smoothing out the data using the three-point moving average helps make the overall trend clearer.

Answer 47

True

Question 48

If, as the value of the independent variable (advertising costs) increases, the value of the dependent variable (e-commerce sales) increases, what type of correlation is this?

Answer 48

Positive correlation

Question 48

A roughly equal number of data points should be above and below the line of best fit.

Answer 48

True

Question 49

In a linear regression model that compares spending on marketing to sales revenue, what is the dependent variable?

Answer 49

Sales revenue

Question 50

Which of the following is a sales forecasting method?

Answer 50

Time series analysis Qualitative analysis Causal models

Question 51

Which type of statistical variation would most likely affect a business that sells firewood?

Answer 51

Seasonal

Question 52

Pandemics are an example of what type of statistical variation?

Answer 52

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