If Deciding Whether to Eliminate a Distribution Channel, Allocating Corporate-Sustaining

question 71

Multiple Choice

If deciding whether to eliminate a distribution channel, allocating corporate-sustaining costs to distribution channels ________.

• A) helps define cost reduction possibilities
• B) gives the misleading impression of potential cost savings
• C) identifies administrative inefficiencies
• D) evaluates the effectiveness of sales personnel

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Definitions:

Value Engineering

A systematic approach to improve the 'value' of products or services by using an examination of function. Value can be increased by either improving the function or reducing the cost.

Quality Function Deployment (QFD)

A process for determining customer requirements (customer “wants”) and translating them into the attributes (the “hows”) that each functional area can understand and act on.

Value Engineering

An organized approach to enhancing the "value" of products and services through a functional analysis.