A Company Has Two Distribution Channels: Wholesale and Business Sales

question 128

Multiple Choice

A company has two distribution channels: wholesale and business sales. Which of the following costs would be allocated as distribution-channel-level costs when analyzing the profitability of customer distribution channels?

• A) sales order costs
• B) customer visit costs
• C) salary of the wholesale distribution channel manager
• D) corporate adminstration costs

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Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

Incorporator

An individual or entity that establishes a corporation by filing the necessary legal documents with a governmental body.

Corporate Attributes

Characteristics that define a corporation, such as legal identity, transferability of shares, and perpetual succession.

Corporate Charter

A legal document that establishes a corporation, outlining its structure, purpose, and regulations under which it will operate.