FedEx Serves Both Consumer and Business Markets,but Most of Its

question 62

Multiple Choice

FedEx serves both consumer and business markets,but most of its revenues come from its business customers.FedEx has become a strategic logistics ally for many of its business customers,going far beyond offering delivery services to offering inventory management,international trade management,and even financing to its commercial customers.This is an example of which of the following differences between the consumer and business markets?

• A) Business purchases involve more buyers.
• B) Buyers and sellers in the business market build close, long-term relationships.
• C) Business markets contain more and larger buyers.
• D) Business buyer demand is derived.
• E) Demand in business markets is inelastic.

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Definitions:

Perpetual

A method of inventory accounting where inventory levels and cost of goods sold are updated in real-time with each sale or purchase transaction.

Perpetual Inventory System

An inventory management method where updates to the inventory account occur continuously as transactions happen.

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during the period.

Periodic Inventory

An inventory system where the inventory count and cost of goods sold calculations are conducted at specific intervals.