Producers Often Shift Some Functions to Intermediaries

question 116

Multiple Choice

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this?

• A) It increases customer loyalty.
• B) It provides the producer with greater control over operations.
• C) It reduces the amount of direct customer interaction.
• D) It lowers the producer's costs and prices.
• E) It ensures greater information security.

---

Definitions:

Overhead Applied

The amount of indirect costs allocated to goods and services based on a predetermined rate.