According to the Text, Physical Distribution Cost Tradeoffs Enable Firms

question 84

Multiple Choice

According to the text, physical distribution cost tradeoffs enable firms to

• A) resolve pricing conflicts among channel partners.
• B) minimize risk during test marketing of new products.
• C) reduce costs of all distribution functions simultaneously.
• D) resolve pricing conflicts within industry sectors.
• E) utilize resources for greatest cost-effectiveness.

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Definitions:

Unused Capacity

Refers to the resources or capabilities within a business that are not currently being used to their full potential, which can lead to inefficiencies or lost income.

Activity-based System

An activity-based system is a method of assigning costs to products or services based on the activities that go into producing them, aiming to provide more accurate cost information.

Resource Drivers

Factors that determine the consumption of resources within a business or organization.

Cost Object

An item, activity, or project for which a separate measurement of costs is desired.