Aaron Has Designed Innovative Accessories for Hard-Core Bicycling Enthusiasts

question 103

Multiple Choice

Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he needs to turn his attention to getting the products to the customers.As he chooses retail partners,which of the following is least important in this process?

• A) looking at the channel structure
• B) determining where target customers will expect to find this product
• C) considering characteristics of channel members
• D) encouraging new bicycling enthusiasts
• E) considering distribution intensity

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, typically related to selling, general, and administrative activities rather than production.

Selling and Administrative Expense

The combined total of all expenses directly related to the selling of products and the administration of a business.

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are an integral part of the finished product.

Transportation Out

Transportation out refers to the costs associated with delivering goods from a seller to a buyer, often recognized as a selling expense.