The Best Way to Reduce Overall Distribution Costs Is to

question 146

Multiple Choice

The best way to reduce overall distribution costs is to

• A) use a total-cost approach to analyze and evaluate the entire system.
• B) minimize the costs associated with materials handling and transportation.
• C) reduce the number of distribution functions that are necessary.
• D) find the cheapest price for each function and use them to create the system.
• E) lower the service standards that the company has.

Describe the provisions related to unsolicited merchandise and credit card liabilities.

Comprehend the significance of state consumer protection laws and their interaction with federal regulations.

Recognize the legal obligations for product labeling and information disclosure.

Understand the criteria for deceptive advertising as regulated by federal agencies.

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Definitions:

Objective Value

The perceived worth of a good or service based on its ability to fulfill a need or want, as opposed to subjective personal preferences.

Opportunity Cost

The cost of foregone alternatives, representing the benefits that could have been received by choosing the next best alternative.

Subjective Values

The personal importance or worth that an individual places on a good or service, which can vary greatly between people.

Time Costs

The opportunity costs associated with the time spent on an activity instead of other, potentially more valuable, activities.