Which of the Following Statements Describes a Major Benefit of Distribution

question 262

Multiple Choice

Which of the following statements describes a major benefit of distribution centres?

• A)Distribution centres are typically used to increase lead time.
• B)Distribution centres hold goods economically for extended periods of time.
• C)Distribution centres emphasize speed and moving stored goods out as soon as possible.
• D)Distribution centres achieve the low costs by locating in remote sites, far removed from transportation access.

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Definitions:

Constructively Capitalize

The accounting practice of recognizing an expenditure as a fixed asset and amortizing it over time, despite not being capitalized in a traditional sense.

Operating Leases

A pact that grants permission to use a property without bestowing ownership rights of the said asset.

Long-Term Debt Rate

The interest rate applied to loans or borrowings with a maturity date extending beyond one year.

Minimum Operating Lease Payments

The minimum amount that a lessee is obligated to pay over the lease term for the right to use an underlying asset, excluding costs such as maintenance and taxes that are paid by the lessee.