Which of the Following Is True of Downstream Channels in a Company's

question 33

Multiple Choice

Which of the following is true of downstream channels in a company's supply chain?

• A)They provide their expertise in product design and production.
• B)They produce the products and services of the company.
• C)They supply raw materials and components to the company.
• D)They contribute financially to the company during production.
• E)They form an intermediary link between the company and its customers.

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Definitions:

Cost Of Goods Sold

The cost of merchandise sold recognized as an expense; the cost of finished goods available for sale minus the ending finished goods inventory.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Conversion Costs

The sum of direct labor costs and manufacturing overhead costs, representing the costs to convert raw materials into finished goods.

Planned Production

The forecasted or scheduled production activities based on demand, inventory levels, and capacity planning to meet business objectives.