A Carpet Manufacturer Has Delivered Carpet Directly to the End

question 48

Multiple Choice

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing

• A) postponement
• B) cross-docking
• C) channel assembly
• D) drop shipping
• E) float reduction

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Definitions:

Cash Discount

A deduction from the stated price of goods or services offered to buyers as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other stipulations guiding the borrowing.

Merchandise Inventory

Goods or stock that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a refund or credit.