The Need for Reverse Channels May Arise in All of the Following

question 151

Multiple Choice

The need for reverse channels may arise in all of the following situations EXCEPT

• A) a consumer buys something in error and wants to return it.
• B) a firm makes an error in completing an order.
• C) a product is recalled for safety reasons.
• D) a consumer changes her mind after purchasing a product.
• E) All of the above create a need for reverse channels.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs—material, labor, and overhead—in product cost calculations, excluding fixed costs.

Fixed Manufacturing Overhead

The sum of all production costs that do not change with the level of output, including salaries, rent, and utility expenses of a manufacturing facility.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of producing goods.

Segmented Income Statement

A segmented income statement breaks down the financial performance of different segments of a business, such as departments or product lines, to analyze each segment's profitability.