Wholesalers Are Often Criticized for Being Inefficient and for Causing

question 159

Essay

Wholesalers are often criticized for being inefficient and for causing consumers to pay higher prices than they would if there were no wholesalers. Discuss.

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Definitions:

Volume Variance

A deviation in manufacturing or procurement costs that arises when the actual volume of production differs from the expected volume.

Productive Capacity

Productive capacity refers to the maximum output a system, facility, or economy can achieve under ideal conditions over a specific time period.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in production volume.

Normal Capacity

The average level of production that a company can sustain under normal circumstances, considering limitations like time and resources.