The Power of a Distributor May Be Weakened If

question 37

Multiple Choice

The power of a distributor may be weakened if:

• A)there is only one intermediary
• B)there are too many options for manufacturers and wholesalers
• C)direct sales to final consumers are prohibited
• D)trade barriers are removed
• E)competition decreases

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the hours actually worked.

Time Variances

The difference between actual time taken to perform an activity and the standard time expected.

Standard Labor Hours

The predetermined amount of time expected to be required to complete a specific task or job.

Actual Costs

The true, total costs incurred for processes or products, including all direct and indirect expenses.