Compare the three distribution strategies that producers use, providing examples of products for each type of distribution
What will be an ideal response?
Student answers will vary. Producers of convenience products and common raw materials typically seek intensive distribution as a strategy to stock their products in as many outlets as possible. The goods are available where and when consumers want them. Toothpaste, detergents, and soft drinks are examples of this kind of distribution.
Selective distribution is used when selling to more than one but fewer than all of the intermediaries who are willing to carry a company's products in a given market. Examples are name-brand blue jeans and computers.
Exclusive distribution is used when the producer wants to stock its products with only one or a few dealers in an area. Examples are expensive cars.
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a. Architectural fees. b. Cost of foundation. c. Capitalization of interest financing charges. d. All of the above
A product's position is based on important attributes as perceived by ________
A) suppliers B) competitors C) market conditions D) target consumers E) resellers
Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is
A) $55,000 B) $60,000 C) $20,000 D) $75,000
Cash outflows for overhead expenditures is shown on:
A) the materials purchases budget. B) the investing activity section of the cash summary budget. C) the cash disbursements budget. D) the cash receipts budget.