The Allocation of Distribution Tasks Should Include Consideration of All

question 32

Multiple Choice

The allocation of distribution tasks should include consideration of all of the following except:

• A) Number of levels in the channel.
• B) The saturation at the various levels.
• C) The number of channel managers at each level.
• D) Types of intermediaries at each level.
• E) The selective number of intermediaries at various levels.

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Definitions:

Fixed Costs

Rent, salaries, and insurance are examples of expenses unaffected by changes in production or sales levels.

Variable Costs

Expenditures that fluctuate in accordance with the amount of products made or sold.

Inventoriable Costs

Expenses directly connected to the production of goods that are initially recorded as inventory and expensed as cost of goods sold when the goods are sold.

Manufacturing Overheads

All indirect costs associated with the production process, including utilities, maintenance, and factory management salaries.