Section I - Multiple Choice (2 Viewers)

[shannan94]

"Herp derp my teacher said so."

The classic ad hominem 'put words in the other one's mouth' argument'.

Well actually I never asked my teacher, I deduced that because it stated that the business "runs an advertising campaign to inform people about this product" the only logical answer could be the selling approach, the marketing approach is distinguished by assessing the customer needs and wants prior to production and adopting the marketing concept and the production approach would simply rely on producing the goods and hoping that buyers will be attracted to the benefits of purchasing a quality product.

Now I may be misled, but that is a logical argument if you ask me.

 

[zb123]

Thank you. Finally someone with half a brain. It was production purely because they emphasised the quality of the product. Every product is marketed somehow, that doesnt mean its a selling or marketing approach...

Yeah, production approach is clearly about emphasisis on the product, in this case not on selling not on customer needs, but abou tthe specific product being designed and innovated. It is clear that the product ensures profit, whilst sales approach is more about selling existing OLD stock, rather than INNOVATIVE products. Clearly, without the product, there would be nothing to sell. If it wer emarketing, the argument would be without customer needs, there would be noone to buy ( so that is wrong). For selling it would be who cares about the product, lets sell all we can using sales representatives. Thus, it is the importance of product!

 

[McLovinFanboy]

yeah i agree, its definately not promotional or marketing (they threw marketing out their for stupid kunts to choose). Its a toss up between production or selling. No more arguements

This

 

[zb123]

So it gross profit definitely cost centres, and is it definitely 15D - psych and demographics?

 

[McLovinFanboy]

So it gross profit definitely cost centres, and is it definitely 15D - psych and demographics?

It is Psych and demographics, but it was reducing fixed costs

 

[berrss]

production - " Up until the 1920s business felt that if they built a better product then customers would just naturally want to buy their products" still doesn't really suit as much as selling.

bos probably didn't to make this question such a mindfuck and im guessing it will be selling..

 

[shannan94]

Yeah, production approach is clearly about emphasisis on the product, in this case not on selling not on customer needs, but abou tthe specific product being designed and innovated.

I'm not sure if you are aware but the selling approach contained all aspects of the production approach i.e Taking orders and delivering goods/performing services but added two extra elements which were to train sales forces and employ advertising strategies. Considering this question also contained the words "advertising campaign" it seems only logical that it would be the selling approach and not the production approach.

 

[zb123]

Fized costs are expenses, whilst variable expenses are COGS, therefore, cost centres influence GP.

 

[ZombieApocalypse]

I got confused with the whole "use cost centres"

i actually sniggered in the exam, because i was thinking, "psh, everything that is a capital expense uses a cost centre"


little did i know the true definition of the word

 

[Keelan134]

Exactly, its only question 6, it should only be a 3-4 question tops.

But heres something to ponder. Why was the business developing a shirt that doesn't stain or get crushed? DISCUSS

 

[shannan94]

Fized (sic) costs are expenses, whilst variable expenses are COGS, therefore, cost centres influence GP.

This.

 

[mitchellwright8]

It is Psych and demographics, but it was reducing fixed costs

This was the only MC question that I think I may have gotten wrong. I mean, it was obviously not sale and leaseback, but for me the other three options all focused on improving NET profit, rather than gross profit. Like expense minimisation obviously has little impact on gross profit, so I quickly ruled that out, and putt reducing fixed costs in the same boat.

So, I was left with cost centres, which I put, but I'm still not very happy with it. In the syllabus, it comes under cost controls, which could TECHNICALLY include the cost of goods sold, and thus relate to profitability, but my understanding of cost centres is that they are also predominantly used for minimising expenses, rather than COGS, and thus would have little/no effect on gross profit.

But, as they say, MC is about the most correct answer, and in this case it wasn't a matter of choosing between two seemingly correct answers but rather choosing between three seemingly equally incorrect answers.

 

[Keelan134]

It is Psych and demographics, but it was reducing fixed costs

I thought we got over this argument Honestly chaps lets leave it to the board, Anyone wanna play Fifa, PS3?

 

[zb123]

keelan waht did u put for q8? and 6? and 15?

 

[McLovinFanboy]

This was the only MC question that I think I may have gotten wrong. I mean, it was obviously not sale and leaseback, but for me the other three options all focused on improving NET profit, rather than gross profit. Like expense minimisation obviously has little impact on gross profit, so I quickly ruled that out, and putt reducing fixed costs in the same boat.

So, I was left with cost centres, which I put, but I'm still not very happy with it. In the syllabus, it comes under cost controls, which could TECHNICALLY include the cost of goods sold, and thus relate to profitability, but my understanding of cost centres is that they are also predominantly used for minimising expenses, rather than COGS, and thus would have little/no effect on gross profit.

But, as they say, MC is about the most correct answer, and in this case it wasn't a matter of choosing between two seemingly correct answers but rather choosing between three seemingly equally incorrect answers.

It is one of the hardest question imo. (only due to me forgeting some definitions)

 

[McLovinFanboy]

keelan waht did u put for q8? and 6? and 15?

Can you put the answer?

Because my paper is burning atm

 

[mitchellwright8]

I'm not sure if you are aware but the selling approach contained all aspects of the production approach i.e Taking orders and delivering goods/performing services but added two extra elements which were to train sales forces and employ advertising strategies. Considering this question also contained the words "advertising campaign" it seems only logical that it would be the selling approach and not the production approach.

This. Thank you shannan94, for putting it into words alot better than I can.

 

[egnaro315]

So cost centers focuses on minimizing expenses. Anyone know if COGS are fixed costs? that question was confusing.

 

[McLovinFanboy]

I'm not sure if you are aware but the selling approach contained all aspects of the production approach i.e Taking orders and delivering goods/performing services but added two extra elements which were to train sales forces and employ advertising strategies. Considering this question also contained the words "advertising campaign" it seems only logical that it would be the selling approach and not the production approach.

THIS

 

[bigSKEAMO1]

Wrong.

As an economics student I can tell you the answer was the exporting company (wine company)

Phew. Had me worried there for a second.

Would not have been happy to have an ER question wrong