Which of the Following Is a Disadvantage of Adding New

question 63

Multiple Choice

Which of the following is a disadvantage of adding new channels in a multichannel distribution system?

• A) decreasing complexity of markets
• B) decreasing control over the system
• C) reducing opportunities for franchising
• D) lowering sales and market coverage
• E) minimizing publicity needs

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Definitions:

Standard Cost Analysis

The practice of comparing standard costs to actual costs to identify variances, understand causes, and take corrective actions.

Lower Limit

The minimum threshold or boundary for a variable or parameter within a given context, such as statistical control limits.

Cost-Based Pricing

A pricing method that determines the selling price of a product by adding a markup to its total cost.

Mark-Up Percentage

The percentage added to the cost price of goods to cover overhead and profit in the selling price.