Which of the Following BEST Describes the Effect of Uncertainty

question 41

Multiple Choice

Which of the following BEST describes the effect of uncertainty?

• A)The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist.
• B)The higher the level of uncertainty about the relationship between resources used and outputs, the more likely a cause-and-effect relationship will exist.
• C)The higher the level of uncertainty about the relationship between resources used and outputs, the more likely the cost will classified as a discretionary cost.
• D)The higher the level of uncertainty about the relationship between resources used and outputs, the less likely the cost will classified as a discretionary cost.
• E)The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist, and the more likely the cost will classified as a discretionary cost.

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Definitions:

Distribution Intensity

The level of market coverage pursued by a company, deciding how widely a product will be distributed, ranging from exclusive to intensive distribution.

Scrambled Distribution

involves a retailer carrying an assortment of goods in unrelated product categories, aiming to provide a one-stop shopping experience.

Intensive Distribution

Distribution strategy that involves placing a firm’s products in nearly every available outlet.