How Do Agents Differ from Brokers

question 246

Multiple Choice

How do agents differ from brokers?

• A) Agents receive commissions.
• B) Brokers take title to merchandise, but agents do not.
• C) Brokers provide information services to customers, but agents do not.
• D) Agents take title to merchandise, brokers do not.
• E) Agents deal in the product lines of a few producers usually on a long term basis, whereas brokers match sellers and buyers as needed.

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Definitions:

Standard Cost System

A standard cost system estimates the costs of production in advance, using standard rates for materials and labor to assess efficiency and performance.

Cost of Goods Sold

Financial outlays directly resulting from the creation of goods a business trades, including materials and manpower.

Standard Cost Variances

The differences between the expected standard costs of manufacturing a product and the actual costs incurred.

Work in Process Inventories

Partially completed goods that are still undergoing the production process.