Making Investments in Distribution in Order to Leapfrog Channels of Distribution

question 63

Multiple Choice

Making investments in distribution in order to leapfrog channels of distribution that are tightly controlled by competitors is an example of ________.

• A) an internalization advantage
• B) an ownership advantage
• C) forward integration
• D) backward integration

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Definitions:

Machine-Hours

A measure of the total time machinery is in operation during a specified period, often used in allocating manufacturing overhead costs.

Production Departments

Specific divisions within a manufacturing organization tasked with producing the company's products.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in the production process, used for costing and efficiency analysis.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, depreciation, and maintenance of factory equipment.