Which of the Following Statements About Place Is FALSE

question 145

Multiple Choice

Which of the following statements about Place is FALSE?

• A) Place variations are required when target markets have different needs.
• B) Product classes suggest Place objectives.
• C) Place decisions have relatively little impact on competition in a product-market.
• D) Place decisions have longer-run implications than Price decisions.
• E) Place decisions need to consider when customers want products.

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total base units, used to allocate overhead costs to products.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities that go into producing them, with the aim of providing more accurate product cost information.

Activity Drivers

Factors that cause changes in the costs of activities, used to allocate costs in activity-based costing accurately.

Direct Labor Hours

The total number of hours worked by employees directly involved in the production process of a company's goods or services.