IBM Has Long Been Perceived as the Leader in Computer

question 264

Multiple Choice

IBM has long been perceived as the leader in computer technology. As such, for many years IBM computers were available only from selected, authorized IBM retailers. Currently, IBM has changed its distribution strategy. Consumers can now purchase IBM computers at several well-known department and discount stores, including Walmart and Kmart, located throughout the country. Initially, IBM employed
________ distribution and made its products available only through a single retail outlet in specific locations. Currently, as computers have become more of a shopping good, IBM is using _________distribution, as it seeks to broaden the degree of its
Distribution and make its computers available in several retail outlets in specific areas.

• A)intensive; exclusive
• B)intensive; selective
• C)exclusive; intensive
• D)exclusive; selective

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Definitions:

Manufacturing Company

An enterprise that processes raw materials or semi-finished goods into finished goods through the use of labor, machinery, tools, and chemical or biological processing or formulation.

Period Cost

Expenses on the income statement that are not directly tied to the production process, such as administrative salaries and marketing costs.

Supplier

An entity that provides goods or services to another entity, typically a part of the supply chain.

Product Costs

The costs directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.