Which of the Following Is True of Cash-And-Carry Wholesalers

question 59

Multiple Choice

Which of the following is true of cash-and-carry wholesalers?

• A)They undertake delivery of the product from manufacturer to consumer.
• B)They offer a greater variety of services than retailers and dealers.
• C)They do not offer credit facilities to customers.
• D)They do not take title to the manufacturer's products.
• E)They are full-function wholesalers.

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Definitions:

Plantwide Predetermined

This typically involves a single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, such as the cost of utilities, maintenance, and salaries of supervisors.

Machine-Hours

A measure of production output or activity in terms of the total hours that machines are operated within a specific period.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the production period based on estimated costs.