Which of the Following Is Most Likely to Force a Manufacturer

question 58

Multiple Choice

Which of the following is most likely to force a manufacturer to pay a slotting allowance?

• A)a selling agent
• B)a merchandise broker
• C)a rack jobber
• D)a small retailer
• E)a large retail chain

---

Definitions:

Weighted-Average Method

is a cost accounting method where costs of goods sold and inventory are determined based on the weighted average of all units available for sale.

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.

Process Costing

A costing method used in manufacturing where the costs are assigned to batches or job orders and averaged over the units produced, typically used in industries producing homogeneous products.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.