Abstract The ability and willingness of wholesalers and retailers to buy, stock, sell, and deliver the product of a manufacturer has a significant and obvious effect on the profit of every firm that is involved in the transactions. Equally significant, but perhaps less obvious, is the view that decisions frequently must be made by the chief marketing executive in a manufacturing firm which are strategic to either modifying or adapting to other firms in the channel of distribution. Expressed differently, this suggests that the marketing executive often views the route taken by his firm's products as a variable which is subject to management in much the same way as is a sales force, an advertising budget, or the size of an inventory. There are two types of financial analysis or accounting service which are not within the scope of discussion here. First, sales and marketing cost analysis are valuable aids to marketing strategy but have been given considerable literary treatment by other writers. Accountants long have recognized that the net profit returned by two different channels may differ substantially, and they often present this information to the marketing executive. Second, a few manufacturers have helped their retail customers establish accounting systems and procedures as a "good-will" service.