Which Statement Indicates a Key Advantage of Carrying Private Brands

question 5

Multiple Choice

Which statement indicates a key advantage of carrying private brands?

• A) A manufacturer can decide to drop a brand or a reseller at any time or even become a direct competitor to its dealers.
• B) Many manufacturers offer rapid delivery,enabling the dealer to carry less inventory.
• C) If a dealer happens to sell a manufacturer's brand of poor quality,the customer may simply switch brands and remain loyal to the dealer.
• D) Heavy advertising to the consumer by manufacturers helps develop strong consumer loyalties.

Understand the relationship between direct labor cost and manufacturing overhead in costing jobs.

Understand the concept and calculation of manufacturing overhead.

Learn to calculate the predetermined overhead rate based on different bases (direct labor-hours, machine-hours).

Analyze the process of applying manufacturing overhead to specific jobs.

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Definitions:

Factor of Production

Resources used to create goods and services, typically classified into land, labor, capital, and entrepreneurship.

Currency Component

The part of the money supply consisting solely of currency in circulation - notes and coins.

Federal Reserve Notes

Paper currency issued by the Federal Reserve, the central bank of the United States, used as legal tender.

Checkable Deposits

Bank accounts that allow the owner to write checks to third parties. Checks can be used for payments while the account earns interest.