Channel costs are a function of
A)cost of raw materials.
B)sales taxes.
C)channel length and distribution margin.
D)All of the above.

Question

Quizplus · Accepted Answer

Channel costs are directly related to the length of the channel, which includes the number of intermediaries involved in the distribution process, as well as the distribution margin, which represents the difference between the price at which a product is sold to intermediaries and the price at which it is sold to the end consumer. While the cost of raw materials and sales taxes may impact the overall cost of a product, they are not directly related to channel costs.

Channel Costs Are a Function of