Question 1

Natural accounts show the purpose for which expenditures are made.

Accepted Answer

In the factory, functional accounts show the purpose for which expenditures are made.

Question 2

Advertising costs can often be allocated to specific products,just as the cost of labor in the factory can be allocated to specific products.

Accepted Answer

The costs allocated to the functional accounts equal, in total, those in the natural accounts. But instead of being used only to show total company profits, the costs can now be used to calculate the profitability of territories, products, customers, sales people, price classes, order sizes, distribution methods, sales methods, or any other break down desired. Each unit can be treated as a profit center.

Question 3

Marketing cost analysis usually requires a new way of classifying accounting data based on natural accounts rather than the functional accounts that are typically used for financial analysis.

Accepted Answer

Marketing cost analysis usually requires a new way of classifying accounting data. Instead of using the type of accounts typically used for financial analysis, we have to use functional accounts.

Question 4

Marketing managers should strive to cut production costs that don't add value for customers.

Accepted Answer

A well-informed marketing manager can play an important role in working with production people to decide which costs are necessary to add value that meets customer needs and which are just added expense with little real benefit.

Question 5

The titles of functional cost accounts show the purpose for which expenditures are made.

Accepted Answer

In the factory, functional accounts show the purpose for which expenditures are made.

Question 6

Nikeid.com,where customers can design a shoe to their own preferences,is a good example of mass customization.

Accepted Answer

Mass customization refers to tailoring the principles of mass production to meet the unique needs of individual customers.

Question 7

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

Accepted Answer

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

Question 8

Mykleenextissue.com,where customers can personalize a box design with their own color photos,is a good example of mass customization.

Accepted Answer

Mass customization refers to tailoring the principles of mass production to meet the unique needs of individual customers.

Question 9

The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

Accepted Answer

The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

Question 10

Marketing cost analysis usually requires a new way of classifying accounting data based on functional accounts rather than the natural accounts typically used for financial analysis.

Accepted Answer

Marketing cost analysis usually requires a new way of classifying accounting data. Instead of using the type of accounts typically used for financial analysis, we have to use functional accounts.

Question 11

Functional accounts show the purpose for which expenditures are made.

Accepted Answer

In the factory, functional accounts show the purpose for which expenditures are made.

Question 12

Accounting statements that are prepared for tax purposes and for outside investors often aren't helpful for managers who need to make decisions about marketing strategy.

Accepted Answer

Summary accounting statements that are prepared for tax purposes and for outside investors often aren't helpful for managers who need to make decisions about marketing strategy.

Question 13

It's often hard for a marketing manager to be familiar with all of the costs associated with a product (or customer)without help from the firm's accountants.

Accepted Answer

Marketing managers and accountants can work together to allocate costs to products or customers. In recent years, accountants have devoted more attention to this problem and given it the name "activity-based accounting."

Question 14

Natural accounts are called so because they have the names of their expense categories.

Accepted Answer

Natural accounts are the categories to which various costs are charged in the normal financial accounting cycle. These accounts are called natural because they have the names of their expense categories.

Question 15

Examples of functional accounts include taxes,supplies,and wages.

Accepted Answer

In the factory, functional accounts show the purpose for which expenditures are made. Factory functional accounts include milling, grinding, maintenance, and so on.

Question 16

Mass customization is based on the idea that all of the people in a particular market have the same needs.

Accepted Answer

Mass customization refers to tailoring the principles of mass production to meet the unique needs of individual customers.

Question 17

Marketing cost analysis usually requires a new way of classifying accounting data.

Accepted Answer

Marketing cost analysis usually requires a new way of classifying accounting data. Instead of using the type of accounts typically used for financial analysis, we have to use functional accounts.

Question 18

For marketing cost analysis,it's often useful to reallocate costs in various natural accounts to specific products or customers.

Accepted Answer

The costs allocated to the functional accounts equal, in total, those in the natural accounts. But instead of being used only to show total company profits, the costs can now be used to calculate the profitability of territories, products, customers, sales people, price classes, order sizes, distribution methods, sales methods, or any other break down desired. Each unit can be treated as a profit center.

Question 19

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Accepted Answer

The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

Question 20

Most small organizations have a separate information technology management group.

Accepted Answer

Most medium-size or larger organizations have a separate information technology management group. This group enables many activities in the marketing strategy process planning model.

Quiz 4: Managing Marketings Link With Other Functional Areas

Natural accounts show the purpose for which expenditures are made.

Advertising costs can often be allocated to specific products,just as the cost of labor in the factory can be allocated to specific products.

Marketing cost analysis usually requires a new way of classifying accounting data based on natural accounts rather than the functional accounts that are typically used for financial analysis.

Marketing managers should strive to cut production costs that don't add value for customers.

The titles of functional cost accounts show the purpose for which expenditures are made.

Nikeid.com,where customers can design a shoe to their own preferences,is a good example of mass customization.

Cost advantages that are gained from economies of scale in production may later be lost to inventory carrying costs.

Mykleenextissue.com,where customers can personalize a box design with their own color photos,is a good example of mass customization.

The first step in marketing cost analysis is to reclassify all the dollar cost entries in the natural accounts into functional cost accounts.

Marketing cost analysis usually requires a new way of classifying accounting data based on functional accounts rather than the natural accounts typically used for financial analysis.

Functional accounts show the purpose for which expenditures are made.

Accounting statements that are prepared for tax purposes and for outside investors often aren't helpful for managers who need to make decisions about marketing strategy.

It's often hard for a marketing manager to be familiar with all of the costs associated with a product (or customer)without help from the firm's accountants.

Natural accounts are called so because they have the names of their expense categories.

Examples of functional accounts include taxes,supplies,and wages.

Mass customization is based on the idea that all of the people in a particular market have the same needs.

Marketing cost analysis usually requires a new way of classifying accounting data.

For marketing cost analysis,it's often useful to reallocate costs in various natural accounts to specific products or customers.

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Most small organizations have a separate information technology management group.