When a Firm Implements the Physical Distribution Concept for Its

question 157

Multiple Choice

When a firm implements the physical distribution concept for its products,what does that imply?

• A)The firm treats physical distribution functions as separate and unrelated activities.
• B)The firm seeks to minimize the cost of distribution for a given customer service level.
• C)The firm supports individual functional activities rather than the whole physical distribution system.
• D)The firm spreads responsibility for different logistics activities among various departments.
• E)The firm focuses to increase customer value with better service at relatively high costs.

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Definitions:

T-Accounts

Diagrammatic representations used in accounting to visualize debits and credits for individual accounts.

Direct Labor-Hours

A measure of the total hours of work directly involved in manufacturing goods or providing services.

Predetermined Overhead Rate

This is a calculated figure used to allocate manufacturing overhead costs to products based on a relevant activity such as machine hours or labor hours, set before the accounting period starts.

Direct Materials

Materials directly linked to the creation of certain products or services.