Which of the Following Is True Concerning Countries' Distribution Systems

question 37

Multiple Choice

Which of the following is true concerning countries' distribution systems?

• A)They reflect the economic levels of countries, so countries at similar economic levels have similar distribution systems.
• B)They are difficult to change because they have evolved over time, reflecting countries' cultural, economic, and legal environments.
• C)They are more similar among countries than pricing and promotional systems are.
• D)When standardized, they offer more cost savings for international companies than when products are standardized.

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Definitions:

Cost of Direct Materials

Refers to the total cost of raw materials that are directly used in the production of goods.

Factory Depreciation

The process of allocating the cost of a physical factory plant and its equipment over its useful life, reflecting wear and tear over time.

Total Raw Materials

The sum of all raw materials that are available for use in the production process, including both those already in process and those in stock waiting to be used.

Direct Labor Costs

Expenses directly associated with the labor used in producing goods or services, including wages for employees who work on the production line.