Producers Often Have to Use "Multichannel Distribution

question 238

Multiple Choice

Producers often have to use "multichannel distribution":

• A) because they want to sell both direct with a website and indirectly through intermediaries.
• B) because big retail chains want to deal directly with producers.
• C) because competitors use a variety of channels.
• D) because present channel members are doing a poor job.
• E) All of these are valid reasons for producers to use multichannel distribution.

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Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to individual products, such as lubricants and cleaning supplies.

Specific Production

A manufacturing or production process tailored to produce specific, customized products for individual customers' requirements.

Process Costing System

An accounting system used to calculate the cost of producing products in industries where the production process is continuous.

Process Costing System

An accounting method used where goods are produced in a continuous process, costs are averaged over all units to calculate unit costs.