BDP International Specializes in Planning, Implementing, and Controlling the Efficient

question 163

Multiple Choice

BDP International specializes in planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet their clients' needs and wants. It also specializes in delivering transportation services for their clients. Due to BDP International's efficiency in these areas, many firms outsource their core physical distribution activities to BDP. BDP is most likely to be a(n)

• A) manufacturers' agent.
• B) industrial distributor.
• C) megacarrier.
• D) third-party logistics firm.
• E) freight forwarder.

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit.

Inventory Transfers

Movements of inventory from one location to another within the same company, affecting the management of stock levels and valuation for accounting purposes.

Effective Income Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total income tax expense by the taxable earnings or income.

Noncontrolling Interest

Noncontrolling interest is a stake in a subsidiary held by investors other than the parent company, reflecting their share of the subsidiaries' assets and earnings.