When a Company Needs to Determine How Much Product to Hold

question 95

Multiple Choice

When a company needs to determine how much product to hold in inventory at various points in the distribution network,which of the fours Ps of marketing is being considered?

• A)place
• B)product
• C)price
• D)promotion
• E)profit

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Definitions:

Transfer Price

The price at which goods and services are transferred between departments or subsidiaries of the same company.

Cost Price Approach

A pricing methodology where the selling price of a product is determined by adding a markup to its total cost of production or acquisition.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Invested Assets

Assets or capital that have been allocated or deployed with the expectation of earning a return or profit.