Wilson Wholesalers,an electrical component distributor,charges customers separate amounts for various services,such as inspecting components prior to packaging,using priority shipping,and sorting components by part number.Which term best describes the strategy used by Wilson Wholesalers?
A) fee for service model
B) activity-based costing
C) service consolidation
D) fragmentation
E) bundling

Question

Quizplus · Accepted Answer

Wilson Wholesalers is charging customers separate amounts for various services, which is known as a fee for service model. This means that customers are only paying for the specific services they require, rather than paying a bundled price for a set of services. Activity-based costing, service consolidation, fragmentation, and bundling are not as relevant to the strategy used by Wilson Wholesalers.

Wilson Wholesalers,an Electrical Component Distributor,charges Customers Separate Amounts for Various