Select the Correct Statement from the Following

question 17

Multiple Choice

Select the correct statement from the following:

• A)B2C is typically many line items per order while B2B is typically few line items per order.
• B)B2C is typically few line items per order while B2B is typically many line items per order.
• C)B2C uses purchase order forms while B2B utilizes credit card purchasing.
• D)B2C buyers usually have a relationship with the seller while B2B do not have a prior relationship.

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Definitions:

Absorption Costing

An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the investment's cost.

Markup

A markup on the base cost of goods intended to cover the expenses of operation and ensure a profit margin.