Aaron Has Designed Innovative Accessories for Hard-Core Bicycling Enthusiasts

question 37

Multiple Choice

Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he needs to turn his attention to the getting the products to the customers.As he chooses retail partners,which of the following should he do?

• A) Look at the channel structure.
• B) Determine where the target customers will expect to find this kind of product.
• C) Consider the characteristics of the channel members.
• D) Consider distribution intensity.
• E) All of these.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost, based on standard pricing.

Total Materials Variance

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

Overhead Controllable Variance

Overhead Controllable Variance refers to the difference between the actual indirect operational expenses incurred and the budgeted or expected overhead costs that could be influenced by management decisions.

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead assigned to production.