If a Distribution Company That Focused on Warehousing and Distribution

question 40

Multiple Choice

If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores,the distribution company would be exemplifying:

• A) Backward vertical integration
• B) Forward vertical integration
• C) Backward horizontal integration
• D) Forward horizontal integration

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Definitions:

Equivalent Units

A term used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Cost of Production Report

A document used in process costing that summarizes the amounts of costs for materials, labor, and overhead and assigns them to produced units.

Processing Department

A division within a factory where a particular stage of production is carried out, such as assembling or painting.

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, typically suitable for uniform products.