Test 6

Question 1

cost that do not vary with production or sales level
Rent
Heat
Interest
Executive salaries

Answer 1

fixed cost

Question 2

cost that vary directly with the level of production

raw materials, packing

Answer 2

variable cost

Question 3

the sum of the fixed and variable costs for any given level of production

Answer 3

total cost

Question 4

a standard markup to the cost of the product

Answer 4

cost-plus pricing ( markup pricing)

Question 5

costs that will occur in the future and that will vary across the alternatives being considered

Answer 5

relevant costs

Question 6

price at which total revenue equals total cost and profits 0

Answer 6

break even price

Question 7

a cost based pricing method that determines price based on a specified rate of return on investment

Answer 7

return on investment pricing (target return pricing)

Question 8

the difference between a companys selling price for a product and its cost to manufacture it or purchase it

Answer 8

markup

Question 9

offering just the right combination of quality and good service at a fair price

Answer 9

value based pricing

Question 10

the sequence of markups used by firms at each level in a channel

Answer 10

markup chain

Question 11

analysis to determine the unit volume and dollar sales needed to be profitable given a particular price and cost structure

Answer 11

Break even analysis

Question 12

amount that each unit contributes to covering fixed costs- the difference between price and variable cost

Answer 12

unit contribution

Question 13

the unit contribution divided by the selling price

Answer 13

contribution margin

Question 14

the total volume that would be bought by a defined consumer group in a defined geographic area in a defined time period in a defined marketing environment under a defined level and mix of industry marketing effort

Answer 14

total market demand

Question 15

the upper limit of market demand

Answer 15

market potential

Question 16

estimating market demand by multiplying a base number by a chain of adjusting percentages

Answer 16

chain ratio method

Question 17

a statement that shows projected revenues less budgeted expenses and estimates the projected net profit for an organization, product, or brand during a specific planning period

Answer 17

projected profit and loss statement

Question 18

shows actual revenues less expenses and net profit for an organization, product, or brand during a specific time

Answer 18

profit and loss statement (income statement)

Question 19

company sales divided by market sale

Answer 19

market share

Question 20

the ratios of selected operating statement items to net sales

Answer 20

operating ratios

Question 21

percentage of net sales remaining after cost of good sold - calculated by dividing gross margin by net sales

Answer 21

gross margin percentage

Question 22

percentage of each sales dollar going to profit - calculated by diving total expenses by net sales

Answer 22

net profit percentage

Question 23

portion of net sales going to operation expenses - calculated by dividing total expenses by net sales

Answer 23

operating expense percentage

Question 24

the number of times an inventory turns over or is sold during a specific time period - calculated based on costs, selling price or units

Answer 24

inventory turnover rate

Question 25

a measure of management effectiveness and efficiency - net profit before taxes divides by total investment

Answer 25

return on investment

Question 26

a measure of marketing profitability that includes only components of profitability controlled by marketing

Answer 26

net marketing contribution

Question 27

the percent of net sales attributable to the net marketing contribution - calculated by dividing net marketing contribution by net sales

Answer 27

marketing return on sales

Question 28

a measure of marketing productivity of a marketing investment - calculated by dividing net marketing contribution by marketing expenses

Answer 28

marketing return on marketing

Question 29

an approach to determining sales force size based on the workload required and the time available for selling

Answer 29

workload method

Question 30

the situation in which one product sold by a company takes a portion of its sales from other company products

Answer 30

cannibalization

Question 31

market consists of many buyers and sellers who trade over a range of prices because sellers can differentiate their offers to buyers

Answer 31

Monopolistic competition

Question 32

market consists only of a few large sellers and each seller is alert and responsive to competitors' pricing strategies and marketing moves

Answer 32

Oligopolistic competition

Question 33

when demand changes greatly with a small change in price

Answer 33

Elastic demand

Question 34

when demand hardly changes with a small change in price

Answer 34

Inelastic curve

Question 35

What has a direct impact on a firm's bottom line?

Answer 35

Price

Question 36

customer driven

Answer 36

Value-based pricing

Question 37

is product driven

Answer 37

Cost-based pricing

Question 38

is set to match perceived value

Answer 38

Price

Question 39

involves charging a constant everyday low price with few or no temporary price discounts.

Answer 39

Everyday low pricing (EDLP)

Question 40

the drop in the average per-unit production cost that comes with accumulated production experience

Answer 40

Experience Curve

Question 41

a part of the marketing mix, refers to providing your product or service at a place which is convenient for consumers or businesses to access

Answer 41

Placement

Question 42

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Answer 42

Supply-Chain Management

Question 43

firms that supply the raw materials, components, parts, and other elements necessary to create a product or service

Answer 43

Upstream

Question 44

marketing channel partners that link the firm to the customer. most of the time are the focus of marketing managers

Answer 44

Downstream

Question 45

are a set of interdependent organizations/members that help make a product or service available for use or consumption by the consumer or business users

Answer 45

direct marketing channel

Question 46

a marketing channel containing one or more intermediary levels

Answer 46

indirect marketing channel

Question 47

a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Answer 47

channel conflict

Question 48

occurs among firms at the same level of the channel. | EX: Ford dealers in Chicago complaining other dealers in the city are stealing sales from them

Answer 48

horizontal channel conflict

Question 49

conflict between different levels of the same channel | EX: Mcdonalds facing growing conflict w its corps.

Answer 49

vertical channel conflict

Question 50

a strategy in which they stock their products in as many outlets as possible. these products must be available where and when consumers want them.

Answer 50

intensive distribution

Question 51

the producer gives a limited number of dealers the exclusive right to distribute the company's products in their territories. Must have contract

Answer 51

exclusive distribution

Question 52

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

Answer 52

selective distribution

Question 53

a specialized part of the entire supply chain process. focus on transportation and storage of goods

Answer 53

logistics

Question 54

uses electromagnetic fields to automatically identify and track tags attached to objects.

Answer 54

RFID (radio-frequency identification)

Question 55

Verizon, AT&T, T-mobile

Answer 55

Examples of oligopolistic competition

Question 56

What has a direct impact on a firm's bottom line?

Answer 56

price

Question 57

Sears and Macy's

Answer 57

Examples of high low pricing

Question 58

a statement that shows projected revenues less budgeted expenses and estimates the projected net profit for an organization, product, or brand during a specific planning period, typically a year

Answer 58

Pro forma: profit-and-loss-statement (or income statement or operating statement)

Question 59

an approach to determining sales force size based on the workload required and the time available for selling

Answer 59

Workload method

Question 60

the number of times an inventory turns over os it sold during a time period. (often one year)

Answer 60

Inventory turnover rate (stock turn rate)