Which of the Following Statements Related to the Role of Pricing

question 47

Multiple Choice

Which of the following statements related to the role of pricing and distribution in an overseas country is NOT true?

• A) The selected channels of distribution often dictate export pricing.
• B) Reducing the number of intermediaries reduces the international escalation of price.
• C) The length of the distribution channel varies from country to country, which can add to the cost of the price charged for a product.
• D) The costs and margins of a given channel vary from country to country.
• E) When a firm has a subsidiary in an overseas market it is able to exert less control on the price charged for the product in that market.

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Definitions:

Production Level

The quantity of goods or services that are produced within a given timeframe by a business.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period.

Volume Of Activity

A measure of the total amount of work performed or output produced in a specific period.

Margin Of Safety

Margin of safety is the difference between actual or projected sales and the sales level at which the business breaks even.