The Difference Between a Distributor and a Manufacturers' Agent Is

question 38

Multiple Choice

The difference between a distributor and a manufacturers' agent is that a manufacturers' agent:

• A) never owns the product.
• B) does not receive a commission for the services provided.
• C) does not work for more than one manufacturer.
• D) does not transmit the sales order to the manufacturer.
• E) never sells a service.

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Definitions:

Net Purchases

The total amount of goods purchased for resale, minus returns and allowances, plus freight and other acquisition costs.

Net Sales

Net sales is the total revenue from goods and services sold by a business, minus returns, allowances, and discounts, indicating the actual sales revenue.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material, labor, and overhead costs.

Gross Profit Rate

A financial metric that measures a company's gross profit as a percentage of its net sales, indicating the efficiency of production and pricing.