Which of the Following Is an Advantage of Adding New

question 92

Multiple Choice

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

• A) limiting market complexity
• B) reducing control over the system
• C) expanding sales and market coverage
• D) decreasing marketing needs and costs
• E) minimizing mass customization of products

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Definitions:

High-low Method

The high-low method is a straightforward way to estimate the variable and fixed components of a cost by using the highest and lowest activity levels and the corresponding total costs.

Machine Hour

A unit of measurement that represents an hour of operation of a machine or equipment.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate fixed and variable costs based on the highest and lowest levels of activity.