
Which of the following statements regarding slotting allowances is FALSE?
A) Such allowances are charged by manufacturers to retailers as a requirement for permitting the retailer to stock the manufacturer's new product.
B) They have been criticized as representing a form of bribery.
C) In certain respects, slotting allowances are a legitimate cost of doing business inasmuch as a retailer incurs extra expenses when stocking a new product.
D) Large, powerful manufacturers are less likely to pay slotting allowances than are small, regional manufacturers.
E) Actual charges are highly variable.
Correct Answer:
Verified
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