Because publicity is "free," it is usually far less effective than advertising if the firm has a new message.

Answer the following statement true (T) or false (F)


False

Publicity people try to attract attention to the firm and its offerings without having to pay media costs. Some publicity involves getting favorable coverage in newspaper stories, magazines, or television. Publicity may be more useful than advertising.

Business

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Taste of the Town, Inc. operates a gourmet sandwich shop. The company orders bread, cold cuts, and produce several times a week. If the cost of these items remains constant per customer served, the cost is said to be:

A. Variable B. Opportunity C. Fixed D. Mixed

Business

A contingent liability is recorded if it is probable and can be reasonably estimated

a. True b. False Indicate whether the statement is true or false

Business

The Harold Corporation just started business in January of 2010. They had no beginning inventories. During 2010 they manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000 and fixed selling and

administrative costs were $6,000. What would be the Harold Corporations Net income for 2010 using absorption costing? A) $114,000 B) $110,000 C) $4,000 D) $106,000

Business

A franchise, such as Radio Shack, would be an example of:

a. A direct supply chain b. An indirect supply chain c. Mid-range between a direct and indirect supply chain d. Multiple channel distribution e. A vertically integrated channel

Business