The Primary Advantage of Automatic Vending as a Form of Retailing

question 78

Multiple Choice

The primary advantage of automatic vending as a form of retailing is that:

• A) it offers a low-cost, personal method of selling products.
• B) it provides continuous service to consumers.
• C) since vending machines must be serviced frequently, the products they sell are always fresh.
• D) vending machines require very few repairs.
• E) it eliminates the need for sales personnel.

---

Definitions:

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.

Schedule of Expected Cash Collections

A detailed projection of the amounts and timing of cash inflows from receivables anticipated to be collected.

Merchandise Purchases Budget

A financial plan that outlines the expected purchases of merchandise inventory over a certain period, considering anticipated sales and desired inventory levels.

Accounts Receivable

Outstanding payments from clients to a business for goods delivered or services rendered, awaiting settlement.