Which of the Following Is an Advantage to Nondirect Distribution

question 6

Multiple Choice

Which of the following is an advantage to nondirect distribution?

• A) They reduce the cost of items buy making bulk purchases.
• B) They do not charge commissions or markups.
• C) They provide added value to the producers buy preordering services.
• D) They work with related product lines of very few producers.
• E) They provide added value by saving buyers time.

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Definitions:

Variable Cost

Costs that change in proportion to the level of production activity or business operations.

Monthly Fixed Cost

Regular, consistent costs that do not vary with production volume or business activity level, calculated on a monthly basis.

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.

Ending Inventory

The monetary amount of merchandise on hand for sale when an accounting cycle concludes, established by the initial stock plus purchases less the expenses of goods sold.