Term
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Definition
- the more popular and traditional accounting methods
- sometimes called net profit
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Term
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Definition
| more popular and traditional accounting methods |
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Term
| The essence of ______________ is to gather, classify, compare, and study cost data |
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Definition
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Term
| To assess the lifetime value of a customer, a company would measure |
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Definition
- the potential for new business
- current sales from customers
- the cost of servicing that customer
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Term
| Marketing cost analysis can be used by sales managers to |
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Definition
- Assess output/input relationships by channel of distributions
- assess output/input relationships by product
- assess output/ input relationships by territory
- Deploy the firm's salespeople most effectively
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Term
| The three cost allocation approaches used in marketing sales analysis are |
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Definition
| full costing, contribution analysis, and activity based costing |
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Term
| In marketing cost analysis, materials would be a ___, while advertising would be a ____ |
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Definition
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Term
| Which of the following would be most likely be considered a direct selling cost? |
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Definition
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Term
| When measuring product costs, a product- line manager's salary would be a ___ cost, but when measuring territory costs, it would be a ___ cost. |
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Definition
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Term
| In contribution analysis, any___ of revenues over costs contributes to the common costs and profits. |
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Definition
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Term
| contribution margin advocates argue that |
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Definition
| only those costs that can be specifically identified with the segment of the business should be deducted |
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Term
| sales - variable manufacturing costs and other variable costs directly traceable to the segment equal |
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Definition
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Term
| When assessing segment performance,___ should not be allocated |
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Definition
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Term
| In ABC accounting, _____ are used to drive the _____ that are needed. |
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Definition
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Term
| Activity-based accounting is based on the premise that almost all company activities are in support of _______ of goods and services to the customers |
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Definition
| manufacturing, marketing, and delivery |
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Term
| Which of the following is NOT one of the steps in conducting a marketing profitability analysis |
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Definition
| separate accounting costs from marketing costs |
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Term
| Which of the following is NOT one of the functional cost groups used in marketing cost analysis |
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Definition
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Term
| Sales managers are typically most concerned with the profitability of |
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Definition
| regions, customers, divisions, and salespeople |
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Term
| Which of the following is an example of a functional account |
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Definition
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Term
| Roberta wants to assess the profit contributions of her salesperson. To do this she will need to, |
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Definition
| Decide if their territories are large enough |
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Term
| Even through profitability analysis requires both, marketers are more likely to conduct___ analysis than____ analysis |
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Definition
| turnover rations; profit potential |
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Term
| Activity based costing (ABC) |
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Definition
| is based on the simple premise that almost all company activities are in support of manufacturing (or producing), marketing, and delivering goods and services to the customer |
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Term
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Definition
| Expenses are to be treated as fixed, semifixed, or variable and how various costs should be allocated to segments must be made |
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Term
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Definition
| the salary and commission items need little explanation; they reflect what each representative is paid and the 1 percent commission each earned on what was sold. |
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Term
| warehouse and shipping costs |
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Definition
| the profitability analysis by sales representatives doesn't include an allocation for the warehouseperson's salary because that salary would continue regardless of what the sales rep sold. |
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Term
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Definition
| are the direct expenses for postage and supplies. most directly linked to the number of orders |
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Term
| Return on assets managed (ROAM) |
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Definition
reflects both the contribution margin associated with a given level of sales and asset turnover
(contribution as a % of sales X asset turnover rate) |
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