In Terms of Price, Which of the Following Types of Goods

question 29

Multiple Choice

In terms of price, which of the following types of goods would most likely be relatively inexpensive?

• A)specialty goods
• B)shopping goods
• C)unsought goods
• D)convenience goods

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Definitions:

Direct Materials

Raw materials that are directly attributable to the product being manufactured and are a significant component of its cost.

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production, such as utilities for the production facility and raw materials.

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Days' Sales

A financial ratio that measures the average number of days it takes a company to convert its receivables into cash.