The Best Way to Reduce Overall Distribution Costs Is to

question 146

Multiple Choice

The best way to reduce overall distribution costs is to

• A) use a total-cost approach to analyze and evaluate the entire system.
• B) minimize the costs associated with materials handling and transportation.
• C) reduce the number of distribution functions that are necessary.
• D) find the cheapest price for each function and use them to create the system.
• E) lower the service standards that the company has.

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Definitions:

Borrow

To receive something of value with the promise to return it or its equivalent value at a future date.

Unlevered Cost

The cost of funding a project without any debt, reflective of the project's risk as if financed entirely by equity.

Annual Coupon

The yearly interest payment made to bondholders, typically expressed as a percentage of the bond's face value.

Tax Rate

The slice of income or profits that is claimed by the government from corporations or people in the form of taxes.