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Which of the Following Statements Regarding Slotting Allowances Is FALSE

Question 97

Multiple Choice

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.

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