Marketing Final Exam

309 thinking key cbe model pricing obj 19 5 top aacsb

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Unformatted text preview: of materials), whereas a fixed cost does not change as output is increased or decreased (e.g., rent). PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 59. A cost that changes with the level of output is called a(n) _____ cost. a. liquidity b. variable c. fixed d. asset e. elastic ANS: B An example of a variable cost is the cost of materials. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 60. Which of the following is most likely to be a variable cost for an Internet retailer that sells spices, herbs, and seasonings to consumers? a. Annual lease on mixer used to blend seasonings b. Executive salaries c. Rent for building where spices and herbs are repackaged for consumers d. Workers’ insurance e. Postage for shipping spices and herbs ANS: E Postage is the only item that varies depending upon the amount of units sold. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Application 61. For a nail salon, the costs associated with the purchase of nail polish and other products like nail polish remover, sterilized equipment, laundry service for the towels, and the beverages given to customers, are all examples of _____ costs. a. marginal b. variable c. fixed d. promotional e. liquidity ANS: B A cost that changes with the level of output is called a variable cost. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Application 62. _____ costs do not change as output is increased or decreased. a. Asset b. Variable c. Fixed d. Symmetrical e. Status quo ANS: C This is the definition of fixed costs. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 63. Central Bark is a dog resort where pets are pampered. Which of the following is the BEST example of one of its fixed costs? a. Payment on the building used by Central Bark b. Dog biscuits c. Dog collars and leashes d. Bubble bath e. Advertisements in local magazines ANS: A The payment on the building remains the same, no matter how many dogs are visit the resort. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Evaluation 64. Mitch owns a pet boarding kennel. The monthly payment on the land he purchased for his kennel, the mortgage on his small office building, and his business license are all examples of _____ costs. a. marginal b. variable c. fixed d. promotional e. demand ANS: C Fixed costs do not change as output changes. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Application 65. _____ cost is the change in total costs associated with a one-unit change in output. a. Variable b. Intermittent c. Elastic d. Marginal e. Flex ANS: D This is the definition of marginal cost. PTS: 1 REF: 309 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB...
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