A company has two distribution channels: wholesale and business sales. Which of the following costs would be allocated as distribution-channel-level costs when analyzing the profitability of customer distribution channels?
A) sales order costs
B) customer visit costs
C) salary of the wholesale distribution channel manager
D) corporate adminstration costs

Question

Quizplus · Accepted Answer

The salary of the wholesale distribution channel manager is a distribution-channel-level cost because it is directly associated with managing a specific distribution channel (wholesale in this case), rather than being tied to individual sales orders, customer visits, or general corporate administration.

A Company Has Two Distribution Channels: Wholesale and Business Sales