Which of the following is a major reason for the American Advertising Federation (AAF) to develop an integrated marketing communications (IMC) campaign?
A. to help advertisers improve product differentiation
B. to encourage purchase of more time and space in traditional media
C. to provide proof for the advertising industry's capabilities
D. to encourage the development of new advertising agencies
E. to redefine advertising in the eyes of corporate executives
Answer: E
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If the estimated cost driver level is overstated, the
a. predetermined overhead rate will be understated. b. predetermined overhead rate will be overstated. c. product cost will be overstated. d. cost pool will be understated.
According to the text, which of the following is the most structured sales presentation method?
A. The need-satisfaction approach B. The memorized approach C. The formula approach D. The AIDA approach E. The problem-solution approach
On January 1, Year 1, Golden Company purchased a new computer system for $50,000. Management estimates that the system will have a 5-year life and a salvage value of $7,500. Jane Golden, the company president, knows that the system can be depreciated using either the straight-line method or the double-declining-balance method. She is concerned as to the possible effect on various financial statement analyses if the company uses one method versus the other.Required: a) Indicate which method will have the larger negative effect (in other words, the less favorable effect) on each of the following ratios in Year 1: (1) Debt-to-equity ratio (2) Return-on-sales b) Indicate which method will have the larger negative effect on each of the following ratios in Year 4: (1) Debt-to-equity
ratio (2) Return-on-sales What will be an ideal response?
Carolina Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and are not repeatable. If the decision is made by choosing the project with the higher IRR, how much value will be forgone? Note that under some conditions choosing projects on the basis of the IRR will cause $0.00 value to be lost. r: 7.75% Year0 1 2 3 4 CFS ?$1,050 $675 $650 CFL ?$1,050 $360 $360 $360 $360
A. $11.45 B. $12.72 C. $14.63 D. $16.82 E. $19.35