Recent increases in downstream costs have occurred because of:
i. increased advertising and product promotion.
ii. increased customer servicing.
iii. increased competition.
iv. increases in product design.
A) i and ii
B) ii and iii
C) iii and iv
D) i, ii and iii

Question

Quizplus · Accepted Answer

Downstream costs refer to expenses incurred after the production phase, such as marketing, distribution, and customer service. Increased advertising and product promotion (i), increased customer servicing (ii), and increased competition (iii) can all lead to higher downstream costs. Increased competition often necessitates more spending on advertising and customer service to maintain or grow market share. Increases in product design (iv) are typically considered upstream or production-related costs, not downstream.

Recent Increases in Downstream Costs Have Occurred Because Of