With Respect to Distributorships,the Existence of a Genuine Selling Opportunity

question 10

Multiple Choice

With respect to distributorships,the existence of a genuine selling opportunity and a realistic opportunity to expand are relevant to which of the following?

• A) the upward payment of fees
• B) the legality of multi-level marketing plan
• C) pyramid selling schemes
• D) timely disclosure of earnings

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Definitions:

Equivalent Units

An approach utilized in process costing to translate partially finished units into an equivalent number of completely finished units.

First-in

A principle often related to inventory valuation where the earliest goods purchased or produced are the first ones to be sold or used.

Conversion

The process of changing resources into finished products, or converting prospects into customers.

Equivalent Units

A concept used in cost accounting to represent the amount of work done on partially completed goods, expressed in terms of fully completed units.