3.9-4.3 Flashcards
Both profit centers and cost centers can be organized in a business by:
Function
Product
Geography
The role of profit centers and cost centers is:
Organizational
Motivational
Financial
When constructing a budget, managers need to be
Forward-looking
Not too optimistic
Flexible
People tend to underestimate the likelihood of negative events
Optimism bias
People generally underestimate the amount of time a task will take
Planning fallacy
Actual income lower than budget is a ____ variance.
adverse
Variance analysis compares the forecast (future) with the actual (past).
true
Which of the following adverse variances might be favorable when considering the context?
Actual variable costs greater than budget due to increased sales.
If the budget for staffing costs is $35,500 and the actual staffing cost is $31,800, the variance is:
Favorable
Which of the following is a benefit of budgeting?
Motivation
Coordination
Communication
A situation where the sole focus of a business is on the needs and wants of a market segment.
Market orientation
The product or brand with the highest market share.
Market leader
The increase in sales revenues or sales volume in an individual market over time.
Market growth
The value of a single company’s sales or revenues compared with the sales of all businesses in a market.
Market share
An element of the services part of the marketing mix related to the activities needed in the interaction between the customer and the business.
Process
An element of the marketing mix related to all the sensory elements that the customer sees, smells, hears and touches when interacting with a business.
Physical evidence
Those who are involved in offering a service; an element of the marketing mix.
People
Part of the marketing mix related to advertising, sponsorships, sales promotion, or other tactics to inform and persuade customers to buy a product.
Promotion
Market share: high, Market growth: high
Stars
Market share: low, Market growth: high
Problem childs
Market share: high, Market growth: low
Cash cows
Market share can be measured as % of revenue dollars or volume (units) sold.
True
Market share: low, Market growth: low
Dogs
What is an advantage of market orientation?
Low risk
The term “market” means:
A type of product
A location
A place where buyers and sellers come together or interact
What is an advantage of product orientation?
Unique selling point
A strategy where a business is producing a specialised or differentiated product for a niche market; one of Porter’s Generic Strategies.
Differentiation focus strategy
A situation where a business becomes the low-cost producer in a niche market; one of Porter’s Generic Strategies.
Cost focus strategy
A strategy where a business is producing a specialised or differentiated product for a broad market; one of Porter’s Generic Strategies.
Differentiation strategy
A situation where a business becomes the low-cost producer in the industry; one of Porter’s Generic Strategies.
Cost leadership strategy
The decisions of a business regarding its product, price, promotion, place, people, processes and physical evidence.
Marketing mix
Gathering information to support marketing decisions.
Market research
A document that outlines a company’s entire marketing process.
Marketing plan
All the processes involved in identifying and satisfying customer needs
Marketing
The process of highlighting the differences between a product and its rivals.
Differentiation
Distinguishing a brand from its competitors.
Product positioning
Selecting the most appropriate market segment for a marketing campaign.
Targeting
Which of the following is a method of setting a marketing budget?
Objective based
Sales based
Incremental based
Which of the following is one of the seven P’s of the marketing mix?
Physical evidence
Price
Processes
Which of the following is a method of segmentation of a market?
Psychographic
Demographic
Geographic
Which of the following is an example of a niche-market product?
Cartier
Louis Vuitton
Lamborghini
Which of the following is an example of a mass-market product?
Oreo
Dove
Colgate
Calculating a moving average enables a business to:
Smooth out extreme variations in data
Which of the following methods can businesses use to predict sales?
Product life cycle analysis
Market research statistics
Causal models
A forecasting method used by businesses to identify trends using past data and extending this information and trend to predict future data.
Extrapolation
A quantitative representation of real-world business dynamics, showing the causal relationship between an independent and dependent variable.
Causal model
A statistical technique used by businesses to identify trends in historical data, such as sales revenue figures of previous years recorded at proper intervals in the past.
Time series analysis
Smoothing out the data using the three-point moving average helps make the overall trend clearer.
True
If, as the value of the independent variable (advertising costs) increases, the value of the dependent variable (e-commerce sales) increases, what type of correlation is this?
Positive correlation
A roughly equal number of data points should be above and below the line of best fit.
True
In a linear regression model that compares spending on marketing to sales revenue, what is the dependent variable?
Sales revenue
Which of the following is a sales forecasting method?
Time series analysis
Qualitative analysis
Causal models
Which type of statistical variation would most likely affect a business that sells firewood?
Seasonal
Pandemics are an example of what type of statistical variation?
Random
