A Manufacturer Utilizing an Intensive Form of Distribution Coverage

question 34

Multiple Choice

A manufacturer utilizing an intensive form of distribution coverage:

• A)usually produces products that require certain specialized selling effort or investment in unique facilities.
• B)manufactures products that are characterized by a low unit value and a high frequency of purchase.
• C)severely limits distribution and provides intermediaries with exclusive rights within a territory.
• D)limits the use of intermediaries to the ones believed to be the best available in the geographic area.

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Definitions:

Corporate Function

Essential activities or responsibilities centralized at the corporate level, helping in achieving the organization's strategic objectives and supporting day-to-day operations.

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.

Standard Variable Cost

The budgeted, per-unit cost of variable elements of production, such as materials and labor, under normal operating conditions.

Direct Materials

The cost of raw materials that can be directly traced to the production process.