Though Uninformed Consumers May Not Appreciate the Extra Markups from Channel

question 32

Multiple Choice

Though uninformed consumers may not appreciate the extra markups from channel members, the four utilities each provide methods of

• A) channel intermediary development.
• B) relationship management between channel intermediaries themselves.
• C) value creation by channel intermediaries.
• D) channel intermediary promotional efforts.
• E) recouping cost overruns.

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Definitions:

Finished Goods

Finished Goods are products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Merchandise Inventory

Goods and products that a business holds in stock with the intent of selling them to customers.

FIFO

First-In, First-Out, an inventory valuation method where the first items placed in inventory are the first sold.

LIFO

An inventory valuation approach called Last In, First Out dictates that the newest items in inventory are the first to be accounted for as sold or used.