If a Producer Has a Technically Superior and Expensive Product

question 264

Multiple Choice

If a producer has a technically superior and expensive product that has achieved brand preference,and the producer wants retailers to provide aggressive promotion and maximum customer service,this producer should seek

• A)multichannel distribution.
• B)exclusive distribution.
• C)administered distribution.
• D)intensive distribution.
• E)selective distribution.

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Definitions:

IMA

Stands for the Institute of Management Accountants, a professional organization that promotes the practice of management accounting and financial management.

Price Variances

The difference between the actual cost and the standard cost of goods or services.

Direct Labor Cost Variance

The difference between the budgeted or expected cost of direct labor and the actual cost incurred.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.