Which of the following statements is true about the slotting allowances charged by many retailers?
A. Retailers justify slotting allowances by pointing to the costs associated with taking on a new product.
B. Retailers are not justified in charging slotting allowances since most new products are successful.
C. Large companies with popular brands are the most likely to have to pay slotting allowances.
D. Slotting allowances are illegal and banned by the federal government.
E. The costs slotting allowances add to new product introductions are minimal.
Answer: A