What Is a Distribution System in Which a Manufacturer Tries

question 8

Multiple Choice

What is a distribution system in which a manufacturer tries to sell its products wherever potential customers?

• A) selective distribution
• B) intensive distribution
• C) exclusive distribution
• D) dispersed distribution

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Definitions:

Fixed Inspection Cost

A cost that remains constant for a specific period regardless of the level of goods produced or inspected.

Machine-Hours

Machine-hours are a measure of the amount of time a machine is operated, used in manufacturing to allocate costs to products.

Relevant Range

It refers to the span of activity within which the assumptions about fixed and variable cost behaviors hold true.

Contribution Margin

The amount of revenue left after deducting all variable costs associated with producing and selling a product, indicating how much contributes towards covering fixed costs and generating profits.