What Is the Primary Purpose of a Distribution System

question 10

Multiple Choice

What is the primary purpose of a distribution system?

• A) to determine the specific needs and wants of the customer
• B) to provide an adequate framework for making a company's product or service available to customers
• C) to help with pricing goods and services
• D) to create and maintain high sales volumes

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Definitions:

Standard Hours Allowed

The number of labor hours that should have been worked according to budgeted productivity levels for the actual level of production achieved.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate.

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.