ACTG 2020 Chapter Notes -Online Advertising, Predatory Pricing, Column Inch
16 Mar 2014
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Document Summary
Product costing: department versus activity- based costing for overhead. Advertising technologies inc. (ati) specializes in providing both published and online advertising services for the business marketplace. The following is a recent conversation between robert and jane minnear, director of marketing for ati. Jane: i just received a call from one of our major customers concerning our advertising rates on the ad. per minute, which is . 50 per minute less than our price. Robert: it"s costing about . 27 per minute to produce that product. I don"t see how they can afford to sell it so cheaply. Jane: you may be right. I want to know how our costs compare with our competitors. Maybe we could be more efficient and find a way to earn a good return on tele- advertising. Number of art and design hours 35,000. Number of creative services subcontract hours. Number of customer service calls. *based on direct labour costs. Visual and audio design costs.
