The three main considerations in structuring a channel of distribution are cost, coverage, and customer service.
Answer the following statement true (T) or false (F)
False
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Which of the following costs is irrelevant in making a decision about a special order price if some of the company facilities are currently idle?
a. direct labor b. equipment depreciation c. variable cost of utilities d. opportunity cost of production
Dynamic pricing is a pricing strategy that involves pricing a product higher than competitors to signal that it is of higher quality.
Answer the following statement true (T) or false (F)
Changes in net working capital should not be reflected in a capital budgeting cash flow analysis because capital budgeting relates to fixed assets, not working capital.
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A) Stockouts can occur at any time in the inventory cycle. B) Stockouts do not depend on the frequency of reorder. C) The cost of a stockout will vary depending on the market served, the customer, and competition. D) Stockouts do not cost money because customers are willing to wait. E) All of the above statements are true.