Why Is It Important That Marketers Understand the Classification of the Business

question 147

Multiple Choice

Why is it important that marketers understand the classification of the business product they are selling?

• A) Distribution channels are almost always direct for all business selling.
• B) OEM markets often act just like the consumer markets.
• C) Personal selling is the most important promotional strategy for all business marketing classifications.
• D) Promotion and distribution strategies tend to vary depending upon the classification.

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Definitions:

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production, reflecting price fluctuations.

Standard Cost System

An accounting system that uses predetermined costs for products or services to compare against actual costs for performance evaluation.

Actual Results

The real outcomes or final figures that have been achieved by a business after a specific period, which can be compared against forecasts or budgets.

Materials Quantity Variance

An analysis used to assess the discrepancy between the expected amount of materials and the actual amount used, based on standard costs, providing insight into manufacturing efficiency.