Which Form of Retailing Is Best Buy Using in Airports

question 183

Multiple Choice

Which form of retailing is Best Buy using in airports to distribute its cell phone and computer accessories, digital cameras, flash drives, and other consumer electronics?

• A)vending machines
• B)salespeople with mobile carts
• C)small-scale traditional retail stores
• D)salespeople wearing Best Buy uniforms with products in backpacks
• E)free-standing kiosks manned with knowledgeable sales personnel

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Indirect Labor

Labor costs not directly tied to the production of goods or services, such as salaries of supervisors and maintenance staff.

Direct Labor Hours

The cumulative hours expended by workers directly engaged in the manufacturing of products or provision of services.

Static Budget

A budget that remains unchanged regardless of changes in activity levels, sales volume, or other variables during the budget period.