The Most Important Factor in Deciding Between a Push or Pull

question 59

Multiple Choice

The most important factor in deciding between a push or pull strategy is:

• A) Cost
• B) How customers in the segment process information
• C) Keeping retail margins high
• D) Channel control
• E) The amount of profit a firm is making

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Definitions:

Direct Labor-Hours

The total time worked by employees who are directly involved in the manufacturing process of a product.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or services, based on a preselected activity base.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor expenses.

Machine-Hours

The total number of hours that machinery is operating during a certain period, often used as a basis for allocating manufacturing overhead.