When Is Direct Selling MOST Common

question 38

Multiple Choice

When is direct selling MOST common?

• A) during raw material purchases in the B2B marketplace
• B) during purchases between retailers and consumers
• C) during the sale of lower-priced product alternatives
• D) during product purchases that require little demonstration

---

Definitions:

Processing Activity

Refers to operations or work performed in a systematic sequence to alter materials or information.

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, making it easier to accurately measure the cost and performance of particular activities.

Machine-Hours

A measure of production time that refers to the number of hours a machine is in operation.

Activity Rate

It is a measure used in activity-based costing to allocate overhead costs to products or services, based on the activities that go into producing them.