All of Following Are Basic Factors in the Selection of a Channel

question 88

Multiple Choice

All of following are basic factors in the selection of a channel of distribution except the

• A) firm's production capability and marketing resources.
• B) target market.
• C) type of transportation to be used.
• D) buying patterns of potential customers.
• E) product itself.

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Definitions:

Fixed Expenses

Recurring costs that remain relatively constant regardless of business activity levels, including property leases and insurance premiums.

High-low Method

An approach to estimating the fixed and variable components of costs by analyzing the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used to allocate manufacturing overhead.