Downstream costs for a merchandising entity include:
i. design.
ii. research and development.
iii. distribution.
iv. customer support.
A) iii and iv
B) i and ii
C) i, iii and iv
D) ii, iii and iv

Question

Quizplus · Accepted Answer

Downstream costs refer to the expenses incurred after the production of a product, such as distribution and customer support. Design and research and development are upstream costs, as they are incurred before production. Therefore, options B, C, and D are incorrect. Option A includes the correct downstream costs of distribution and customer support.

Downstream Costs for a Merchandising Entity Include