Q317
In customer cost hierarchy, cost of activities related to specific channel of distribution is classified as
A.
discretionary channel costs
B.
corporate-sustaining costs
C.
distribution-channel costs
AnswerD.
engineered resource costs
Answer: Option C
Solution
Answer: Option C
Solution:
In customer cost hierarchy, cost of activities related to specific channel of distribution is classified as distribution-channel costs. A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.