Which of the Following Is the Least Accurate

question 6

Multiple Choice

Which of the following is the least accurate.A mercantile agent is:

• A)a person appointed to sell property on behalf of a client.
• B)a factor who sells the principal's property in his own name.
• C)a broker.
• D)a factor who sells the principal's property in the client's name.

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Definitions:

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production staff.

Activity Rates

Are used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving accuracy in product costing.