Some Companies Want to Get Their Products into as Many

question 94

Multiple Choice

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company's overall strategy, it will choose ________ distribution.

• A)primary
• B)independent
• C)intensive
• D)exclusive
• E)selective

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Definitions:

Total Cost Variance

The difference between the budgeted or standard cost of production and the actual cost incurred.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, indicating cost management efficiency.

Direct Materials Quantity Variance

The discrepancy between the true usage of direct materials in production processes and the forecasted standard usage, multiplied by the standard unit cost.

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.