The Three Major Types of Vertical Marketing Systems Are Contractual

question 301

Multiple Choice

The three major types of vertical marketing systems are contractual, corporate, and

• A) integrated.
• B) cooperative.
• C) delegated.
• D) manufacturer-dominated.
• E) administered.

Analyze the effect of changes in activity level on costs and per unit calculations.

Differentiate between period costs and product costs.

Determine manufacturing overhead and its components.

Calculate direct costs and prime costs in manufacturing and service departments.

---

Definitions:

Actual Output

The actual quantity of goods or services produced by a company within a specified timeframe.

Variable Overhead Rate

The ratio of variable overhead costs to an activity base such as units produced or direct labor-hours, used for costing purposes.

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as factory rent and salaries of supervisory personnel.

Budget Variances

The differences between budgeted amounts and actual amounts.