Intensive Distribution

question 118

Multiple Choice

Intensive distribution

• A)gives a retailer more incentive to promote a product than he or she would have with exclusive distribution.
• B)is not very likely to be used in combination with multichannel distribution.
• C)is more likely to be used with relatively high-priced products than with low-priced products.
• D)is often used for convenience products and business supplies.
• E)None of these answers is correct.

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Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour, often used in allocating manufacturing overhead costs.

Variable Overhead

Costs of overhead that vary with the level of production activity, such as utilities for machinery or materials handling expenses.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Component

The part of a cost or expense that varies directly with the level of activity or production volume, in contrast to fixed costs.