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Definition of Direct-Response Advertising

Direct-Response Advertising Image 1

Direct-Response Advertising

advertising designed to elicit sales to customers who can be
shown to have responded specifically to the advertising in the past. Such costs can be capitalized
when persuasive historical evidence permits formulation of a reliable estimate of the future revenue
that can be obtained from incremental advertising expenditures.



Related Terms:

direct cost

a cost that is distinctly traceable to a particular cost object


Direct cost

A cost that can be clearly associated with specific activities or products.


direct costing

see variable costing


Direct costing

A costing methodology that only assigns direct labor and material costs
to a product, and which does not include any allocated indirect costs (which are all
charged off to the current period).


Direct costs

Costs that are readily traceable to particular products or services.



Direct Deposit

The direct transfer of payroll funds from the company bank account
directly into that of the employee, avoiding the use of a paycheck.


direct deposit

A system where funds are electronically credited to your account by a financial institution or a payroll service. For example, you can arrange with your employer to have your pay cheques automatically deposited into your no fee bank account.


Direct-Response Advertising Image 2

Direct estimate method

A method of cash budgeting based on detailed estimates of cash receipts and cash
disbursements category by category.


direct labor

the time spent by individuals who work specifically
on manufacturing a product or performing a service;
the cost of such time


Direct labor

Labor that is specifically incurred to create a product.


Direct lease

Lease in which the lessor purchases new equipment from the manufacturer and leases it to the
lessee.


direct material

a readily identifiable part of a product; the cost of such a part


Direct materials cost

The cost of all materials used in a cost object, such as finished goods.


Direct materials mix variance

The variance between the budgeted and actual mixes of
direct materials costs, both using the actual total quantity used. This variance isolates
the unit cost of each item, excluding all other variables.


Direct method

A method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows.


direct method

a service department cost allocation approach
that assigns service department costs directly to revenueproducing
areas with only one set of intermediate cost
pools or allocations


Direct-Response Advertising Image 3

Direct-Method Format

A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.


Direct paper

Commercial paper sold directly by the issuer to investors.



Direct placement

Selling a new issue not by offering it for sale publicly, but by placing it with one of several
institutional investors.


Direct quote

For foreign exchange, the number of U.S. dollars needed to buy one unit of a foreign currency.


Direct search market

Buyers and sellers seek each other directly and transact directly.


Direct stock-purchase programs

The purchase by investors of securities directly from the issuer.


Direct write-off method

A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.


Director

A member of a company’s Board of directors.


Foreign direct investment (FDI)

The acquisition abroad of physical assets such as plant and equipment, with
operating control residing in the parent corporation.


indirect cost

a cost that cannot be traced explicitly to a particular
cost object; a common cost


Indirect cost

A cost that is not directly associated with a single activity or event. Such
costs are frequently clumped into an overhead pool and allocated to various activities,
based on an allocation method that has a perceived or actual linkage between
the indirect cost and the activity.


Indirect costs

Costs that are necessary to produce a product/service but are not readily traceable to particular products or services – see overhead.



Indirect labor

The cost of any labor that supports the production process, but which is
not directly involved in the active conversion of materials into finished products.


Indirect method

A method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.


Indirect-Method Format

A format for the operating section of the cash-flow statement that
presents the derivation of cash flow provided by operating activities. The format starts with net
income and adjusts for all nonoperating items and all noncash expenses and changes in working capital accounts.


Indirect quote

For foreign exchange, the number of units of a foreign currency needed to buy one U.S.$.


Indirect Taxes

Taxes paid by consumers when they buy goods and services. A sales tax is an example.


Interac® Direct Payment

Instead of paying with cash or a credit card, Interac direct Payment allows you to pay for your purchase with a debit card, such as your bank card. The amount of the purchase is electronically debited, or withdrawn, from your bank account (see debit card).
Here's how to pay for items using Interac direct Payment and your bank account:
1. Swipe your bank card (or debit card) through the point of sale (POS) terminal at the store's check-out
2. Enter your personal identification number (PIN), confirm the amount to be paid and indicate the account (chequing) from which the money is to be drawn.
3. The specified amount is then electronically debited from your account.


Lag response of prepayments

There is typically a lag of about three months between the time the weighted
average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment
speed is observed.


pre-authorized direct deposit

A system where funds are electronically credited to your account by a financial institution or a payroll service.



 

 

 

 

 

 

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