The cost of the manager of a retail distribution channel would most likely be classified as a ________.
A) customer-sustaining cost
B) distribution-channel cost
C) customer batch-level cost
D) corporate-sustaining cost

Question

Quizplus · Accepted Answer

The manager of a retail distribution channel is directly related to the distribution of products to the customers, and thus would fall under distribution-channel costs. Customer-sustaining costs are those costs specifically related to attracting and retaining customers, while customer batch-level costs pertain to the cost incurred to process a specific batch or group of customers. Corporate-sustaining costs are associated with the overall management of the organization and not specific to any particular channel.

The Cost of the Manager of a Retail Distribution Channel