In Which of the Following Situations Is a Business Most

question 31

Multiple Choice

In which of the following situations is a business most likely to opt for a direct rather than an indirect marketing channel system for product distribution?

• A)The business manufactures products for the consumer market rather than the business market.
• B)The business's products are sold in wide markets,and require localized availability of parts and services.
• C)The business is new to the market and does not have a network of contacts in place for distribution.
• D)The business wants to maintain complete control over its marketing messages and collection of payments for products.
• E)The business manufactures a product that people buy on impulse and is generally sold in small quantities.

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Definitions:

Manufacturing Costs

Manufacturing costs refer to the total expenses involved in the process of producing goods, including direct materials, direct labor, and manufacturing overhead.

Journal Entries

The method used in bookkeeping to record all the financial transactions of a business.

Raw Materials

Fundamental substances used in the creation or manufacturing of goods.

Overapplied Overhead

A condition where the overhead allocated to goods produced exceeds the actual overhead costs incurred.