The Wheel of Retailing Refers to

question 271

Multiple Choice

The wheel of retailing refers to

• A)the life cycle of most consumer products sold by retailers.
• B)the diffusion of types of retailers for a new product.
• C)the progression of retail locations an outlet goes through.
• D)the description of how new forms of retail outlets enter the market.
• E)the description of retail management philosophies.

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Definitions:

Scrap Value

The estimated resale value of an asset after its useful life is over and it is deemed to no longer be usable for its intended purpose.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes towards covering fixed costs and earning profit.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Marginal Costs

The additional cost incurred from producing one additional unit of a product or service.