Critics argue that the use of ties agency compensation to media costs A the

Critics argue that the use of ties agency

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46)Critics argue that the use of ________ ties agency compensation to media costs.A)the commission systemB)the objective-and-task compensation systemC)the cost-plus agreementD)the fixed fee arrangementAnswer: A47)Which of the following is NOT a valid criticism of the commission compensation system for an adagency?48)Under which type of compensation system might an agency be more inclined to recommendexpensive media such as network television and national magazines to its clients?49)An agency books television media space at a cost of $1,000,000. The standard agency commissionon this buy is:50)An agency books television media space at a cost of $1,000,000. If cash discounts do not apply,what price does the agency pay to the media company?A)$850,000B)$985,000C)$1,150,000D)$1,000,000 and the client pays the agency commissionAnswer: A51)Why are negotiated commission structures becoming more common?8
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52)Which of the following statements about agency commissions is true?53)What form of compensation is used to pay the advertising agency when the client's advertisingprogram does not involve a large amount of media billings?
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