Which of the following are true about thinking? I. It refers to the mental activity that goes on in the brain when a person is organizing and attempting to understand information and communicating information to others. II. It is a role-playing model that serves as a team-based problem solving and brainstorming technique that can be used to explore problems and solutions and uncover ideas and options that might otherwise be overlooked by a homogeneously thinking group. III. It transforms a particular representation of information into new and different forms, allowing us to solve problems, comparing it to other information, or making decisions.

Which of the following are true regarding activity-based
costing?

a. A primary goal of using ABC is a more useful alloca-
tion of manufacturing overhead to product lines.

b. Under ABC, direct labor hours are never used to allo-
cate overhead costs to activity pools or product lines.

c. The use of ABC is indicated when it is suspected that
each of a firm’s product lines consumes approximately
the same amount of overhead resources but the current

allocation scheme assigns each line a substantially dif-
ferent amount.

which of the following are True or false? 

1. Retailers perform the major channel activities of creating time, place, and ownership utilities.
    
2. Consumer innovators, early adopters, the early majority, the late majority, and laggards are the five categories of purchasers in the consumer adoption process based on relative time of adoption.
    
3. Product recalls and repairs are handled through reverse channels.
    

4. One way to distinguish goods from services is that services are inseparable from their service providers.

    
5. If potential buyers can observe an innovation’s superiority in a tangible form, the adoption rate increases.
    
6. Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by current customers; increase the number of users for the product; or change package sizes, labels, or product quality.
    
7. Specialty retailers typically attract customers by offering the products at the lowest possible prices.
    
8. A hair styling would ordinarily occupy the extreme service end (i.e., a pure service) of a goods-services continuum.
    

9. Compared to first adopters, later adopters tend to be more highly educated, younger, and more willing to take risks on new technologies.

    
10. The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.
     

11. The main factors involved in determining a product’s markup are the inventory turnover rate and the services performed by the retailer.

     

     
12. The complete sequence of suppliers and activities that contribute to the creation and delivery of products is known as the supply chain.
     
13. Because they do not have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.
     
14. A dual distribution strategy is usually adopted to maximize coverage of the marketplace or increase the cost effectiveness of the marketing effort.
     
15. Since consumers devote as little effort as possible to the purchase of convenience goods, the location of stores stocking the product is an important factor in a convenience good\’s visibility.
     
16. Extensive planning time is required for the purchase of supplies.
     

17. A marketing channel is an organized system of marketing institutions and their interrelationships that promote the physical flow and ownership of products from producers to consumers.

     
18. A market penetration strategy seeks to increase sales of existing products in existing markets.
     
19. The purpose of test marketing is to verify that a product will perform well in a real-life business environment.
     

20. General merchandise retailers distinguish themselves from specialty and limited-line retailers by the large number of product lines they carry.

     
21. The goal of customer service is to attract and retain target customers.
     
22. The decision a firm makes about the intensity of distribution of its products should ensure adequate market coverage for the product.
     
23. Retailers must consider the overall profitability of each product line and product category to develop a successful merchandise mix.
     

24. In the case of convenience stores, customers usually compare prices, assortments, and quality levels at competing outlets before making purchase decisions.

     

25. A wholesaler is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers.