Producers Benefit from Using Intermediaries Because They

question 51

Multiple Choice

Producers benefit from using intermediaries because they .

• A)bring a fresh point of view to strategy development
• B)will store products indefinitely
• C)are rarely backlogged with orders
• D)eliminate risk
• E)offer greater efficiency in making goods available to target markets

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Cash Account

An account that records all transactions made in cash, including receipts and payments.

Direct Labor Costs

The wages paid to workers who are directly involved in the production of goods or the provision of services, excluding the cost of materials and overhead.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost expected for those materials.