A Channel of Distribution

question 11

Multiple Choice

A channel of distribution:

• A) is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
• B) is only needed when products must be stored.
• C) must include one or more intermediaries.
• D) is only needed when products are sold indirectly.
• E) None of these alternatives is a good answer.

---

Definitions:

Actual Results

The real financial or operational outputs of a business, as opposed to projections or estimates.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead allocated, based on activity level.

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Variable Manufacturing Overhead

Costs that vary with the level of production output and include expenses such as indirect materials, supplies, and utilities used in manufacturing.