Which of the Following Activities Would Drop Shippers Be Most

question 36

Multiple Choice

Which of the following activities would drop shippers be most likely to perform?

• A) provide delivery services from a wholesaler's warehouse to a retailer's store
• B) solicit orders from a retailer and arrange for the producer to make the deliveries
• C) manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck
• D) provide brokerage services by helping other wholesalers negotiate deals

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Definitions:

Control Account

An account used in accounting to summarize and manage detailed information while keeping the general ledger free of clutter.

Expense Account

An account used to track expenses incurred, which are then offset against revenue to determine net profit.

Raw Materials Inventory

The total cost of all the raw materials that are used in production and currently stored by a company.

Materials Received

Refers to the quantity and cost of raw materials received by a company for use in production during a specific period.