1. A good control system should active correct action no sooner _______ occur.
A. flexible
B. deviations
C. controllable
D. none of these
Answer - Option B
Explanation:
An effective marketing control system:
• Set matching standards
• Guaranteed quick detection of deviations and prompt action
• Match with organisation pattern
• Make it understandable
• Make it flexible
• Make it economical
2. A departmental store offers a wide range of products in an organised fashion and is easily accessible to the _________.
A. consumers
B. firm
C. suppliers
D. governments
Answer - Option A
Explanation:
A departmental store is a large retail trading organization. It has several departments, which are classified and organized accordingly.
• Departments are made as per different types of goods to be sold.
• For example, individual departments are established for selling packed food goods, groceries, garments, stationery, cosmetics, medicines, sports, furniture, etc., so that consumers can purchase all basic household requirements under one roof.
• It provides them maximum shopping convenience and therefore, also called as ‘Universal Providers’ or ‘One spot shopping’. The concept of a departmental store first originated in France.
3. The net profit will be maximised when _______.
A. fixed cost remains same
B. contribution is maximised
C. fixed is increased
D. contribution is minimized
Answer - Option D
Explanation:
The net profit margin is a more accurate measure of a company’s profitability, as it reveals the percentage of revenue that actually reflects a company’s profit per dollar of sales.
• The formula for net profit margin is “Net profit margin = (revenue – cost of goods – operating expenses – other expenses – interest – taxes) / revenue”
4. Those cost items which attach or cling to units of finished goods are called ________.
A. full costs
B. product costs
C. fixed costs
D. variable costs
Answer - Option B
Explanation:
Product cost refers to the costs used to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead.
• Product cost should include all costs related to a service, such as compensation, payroll taxes, and employee benefits.
• The calculation is: (Total direct labor + Total direct materials + Consumable supplies + Total allocated overhead) / Total number of units = Product unit cost)
5. The contribution approach to pricing is based on the incremental _______.
A. market force
B. cost systems
C. trade customs
D. cost principle
Answer - Option D
Explanation:
The cost principle is one of the basic underlying guidelines in accounting. It is also known as the historical cost principle. The cost principle requires that assets be recorded at the cash amount (or its equivalent) at the time that an asset is acquired.