Fixed Costs Are Costs That

question 58

Multiple Choice

Fixed costs are costs that:

• A) vary directly with changes in activity.
• B) vary inversely with changes in activity.
• C) remain constant on a per-unit basis.
• D) remain constant as activity changes.
• E) increase on a per-unit basis as activity increases.

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Definitions:

Exclusive Distribution

A distribution strategy where a supplier grants a single retailer or wholesaler exclusive rights to sell their product in a specific geographic area.

Point of Difference

A unique feature or benefit that sets a product or service apart from its competitors in the eyes of target customers.

Channel Conflict

A situation where channels for the same product or service compete with each other, potentially reducing profitability for one or all channels involved.

Exclusive Distribution

A distribution strategy where a product is sold exclusively through a specific retailer or distributor.