If a Product Destroyed or Damaged in Transit Is Intended

question 23

Multiple Choice

If a product destroyed or damaged in transit is intended to be placed into general replacement inventory,then the retailer would likely receive ___________.

• A)the retail price plus freight if previously paid
• B)the wholesale price plus 20 percent
• C)the retail price minus 20 percent
• D)the wholesale price plus freight if previously paid

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Definitions:

Fixed Costs

Costs that do not vary with the volume of production, such as rent, salaries, and insurance.

Variable Costs

Expenses that vary directly with the amount of production or operational activity within a company.

Mass Customization

The production approach that allows for the creation of personalized products or services to meet individual customer needs, while still achieving economies of scale.

Dell

A multinational computer technology company known for its direct sales model and build-to-order approach to personal computers.