A Commonly Used Indirect Channel Moves Product from Producer to Retailer

question 39

Multiple Choice

A commonly used indirect channel moves product from producer to retailer to consumer. Companies like Target and The Home Depot buy directly from manufacturers rather than wholesalers. This channel is used when

• A) the retail outlets are regionally located.
• B) the cost of maintaining inventory is low.
• C) there is little if any seasonal demand.
• D) the risk lies solely with the manufacturer.
• E) the retailer is large and can buy in large quantities from a producer.

Differentiate between fixed and variable costs.

Determine total and per-unit costs within the relevant range.

Calculate prime and conversion costs.

Understand the general guidelines and purposes of career assessment.