The expenditure incurred in maintaining a channel once it is established is referred to as:
A)continuity.
B)cost.
C)cash flow.
D)net present pricing.

Question

Quizplus · Accepted Answer

The option B, cost, is the correct answer. Once a channel is established, various expenditures are required to maintain it, such as advertising costs, sales promotions, and personnel costs. These costs are referred to as channel maintenance costs or simply, the cost of maintaining the channel. Continuity refers to the consistency in the flow of goods, services, and information in a channel. Cash flow refers to the inflow and outflow of cash in a business, whereas net present pricing is a method used to calculate the net present value of a product or service.

The Expenditure Incurred in Maintaining a Channel Once It Is