Which of the Following Factors Is Considered by Retailers in Making

question 2

Multiple Choice

Which of the following factors is considered by retailers in making merchandise allocation and promotion decisions specific to difficult economic times?

• A) Shrinkage
• B) Paycheck cycle
• C) Buffer stock
• D) Backup stock
• E) Fill rate

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Definitions:

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Direct Materials Price Variances

The difference between the actual cost of direct materials used in production and the standard cost expected to be used, showing how effectively materials costs are managed.

Direct Labor Rate Variances

The difference between the expected cost of direct labor per unit of production and the actual cost incurred.

Work in Process

Partially finished goods that are still in the production process at a specific point in time.