A Contractual Vertical Marketing System Refers to an Arrangement Whereby

question 158

Multiple Choice

A contractual vertical marketing system refers to an arrangement whereby

• A)privately owned distributors and retailers integrate their efforts,on a contractual basis,to obtain greater functional economies and marketing impact than they could achieve alone.
• B)independent production and distribution firms integrate their efforts,on a contractual basis,to obtain greater functional economies and marketing impact than they could achieve alone.
• C)a manufacturer offers a limited number of franchise licenses to restrict the number of franchisees within a given geographical region.
• D)a firm reaches different buyers by employing two or more different types of channels for the same basic product.
• E)a firm formally designates by contract one channel member-whether producer,wholesaler,or retailer-to coordinate,direct,and support all other channel members.

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Definitions:

LIFO Periodic

An inventory valuation method, Last In First Out, used in periodic inventory systems where the last items added to the inventory are assumed to be sold first.

Perpetual LIFO

Perpetual LIFO, or Last-In, First-Out, is an inventory accounting method continuously updating inventory and costs of goods sold by assuming the last items purchased are the first to be sold.

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period.

Cost Flow Assumption

A method adopted by businesses to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).