Which Statement About Gazelle Is False

question 26

Multiple Choice

Which statement about Gazelle is false?

• A) Gazelle distributes electronic products using its online channel.
• B) Gazelle buys, takes title and stores electronic products.
• C) Gazelle pays for electronic products up front, before it has a buyer for them.
• D) It is part of a $300 billion industry that distributes used electronic equipment.
• E) Distribution channels are not adequately used by Gazelle..

---

Definitions:

Direct Labor-Hours

Comprehensive work time recorded by employees who are directly engaged in producing goods.

Denominator Level

The level of activity chosen to allocate fixed costs in absorption costing, often representing capacity or expected production volume.

Variable Overhead Rate

the rate at which variable overhead costs are applied to units of production, often used in calculating the total cost of producing a product.

Fixed Manufacturing

Costs associated with manufacturing that remain constant, regardless of the level of production, such as rent for factory premises.