DeBeers Sells Most of the Diamonds It Produces to Industry

question 37

Multiple Choice

DeBeers sells most of the diamonds it produces to industry.The company controls over 90 percent of the market and has great power over its distributors.In its marketing channel,DeBeers would be considered a:

• A) channel authority.
• B) channel member.
• C) channel captain.
• D) channel gatekeeper.
• E) power broker.

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Definitions:

Activity-Based Budgeting

A budgeting approach where budgets are created based on activities and processes, taking into consideration the costs of all activities necessary to produce and sell a product.

Budget System

A systematic process used by businesses and organizations for planning, controlling, and allocating financial resources.

Expected Activities

The projected activities or operations a business plans to undertake, usually within a specific timeframe, often related to budgeting and planning.

Operating Budgets

Operating budgets are detailed projections that outline the expected income and expenditures related to the day-to-day operations of a business for a specific period.