Physical Distribution

question 11

Multiple Choice

Physical distribution

• A) should not require trade-offs for managers.
• B) means that consumers get products for low prices.
• C) includes transportation of products, but logistics does not.
• D) is invisible to most consumers in the United States.
• E) All of these alternatives are correct.

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Definitions:

Depreciation

The reduction in the value of an asset over time, due in particular to wear and tear.

Expenditures Approach

A method of calculating GDP that totals consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculating the total value of all goods and services produced over a specific time period.

Gross Investment

The total amount spent on purchases of new capital assets and replacement of depreciated assets within a specified period.