When Planning Channels of Distribution, a Marketing Manager Should Know

question 50

Multiple Choice

When planning channels of distribution, a marketing manager should know that

• A) vertically integrated systems are seldom used-because of the difficulty of maintaining control.
• B) a contractual system offers both flexibility and stability for its members.
• C) the disadvantage of a corporate channel system is reduced control over distribution activities.
• D) the disadvantage of an administered system is that it is a very formal arrangement.
• E) None of these alternatives is correct.

Understand the function of control accounts and subsidiary ledgers.

Understand the process of recording closing and reversing entries.

Grasp the basics of the income statement preparation and its components.

Understand the process and importance of adjusting entries in financial statements.

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Definitions:

Average Costs

The total costs divided by the quantity produced or consumed, indicating the cost per unit.

Transfer Prices

The prices at which services, goods, or capital are exchanged between departments or divisions within the same company or between subsidiaries.

Intermediate Products

Goods that are used as inputs in the production of other goods, not intended for final consumption.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.