What Functions Do Intermediaries Serve? How Is the Concept of Disintermediation

question 72

Essay

What functions do intermediaries serve? How is the concept of disintermediation related to Porter's Five Forces? Is disintermediation inevitable for all industries (why or why not)?

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Definitions:

Underapplied Overhead

Happens when the overhead costs assigned to manufacturing are lower than the overhead expenses that were actually incurred.

Actual Overhead

Actual overhead refers to the direct costs actually incurred by a business for operations, including utilities, rent, and maintenance expenses.

Overhead Applied

The portion of overhead costs allocated to individual products or services based on an estimated or predetermined rate.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are considered variable costs, forming part of the inventory costs.