A Downside of Direct Delivery Is

question 25

Multiple Choice

A downside of direct delivery is

• A) that it takes product flow away from the distribution center.
• B) can create higher transportation charges.
• C) that customer may not like this method.
• D) the product may not lead itself to this method.

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Definitions:

Operating Costs

Expenses associated with the day-to-day functioning of a business, including costs related to administration, sales, and production operations.

Service Hours

A measure of the amount of labor time or effort that is provided by a company as a service.

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.

Price Decrease

A reduction in the monetary amount that consumers are required to pay to acquire a good or service.