The Physical Distribution Concept Says (Or Implies) That

question 135

Multiple Choice

The physical distribution concept says (or implies) that:

• A) transporting, storing, and product-handling are unrelated activities for cost control.
• B) the best distribution system is the lowest cost one.
• C) a firm should seek to minimize the total cost of transporting, storing, and product-handling-for a given level of customer service.
• D) if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs-then the total cost of physical distribution will be minimized.
• E) None of these alternatives is correct.

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Definitions:

Exchange Rate Risk

The potential for loss due to fluctuations in the exchange rate between two currencies in international finance.

Foreign Currency

Currency used in a country other than one's own, necessitating exchange for transactions.

Marginal Tax Rate

The rate at which the next dollar of taxable income would be taxed, often applied to measure the impact of taxes on additional income.

Exchange Rate

The velocity at which one currency can be swapped for another, affecting global trade and investments.