Which of the Following Statements Describes an Advantage to Retailers

question 150

Multiple Choice

Which of the following statements describes an advantage to retailers associated with developing their own brands?

• A) Dealers must market the brand,thus cutting into the gross margin.
• B) Higher profits are available on private brands.
• C) Private brands,particularly those owned by discounters,are perceived to be of a higher quality.
• D) Dealers often buy in large quantities and thus always have a ready supply.
• E) Private brands are normally delivered more promptly by the manufacturer.

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Definitions:

Bank Checking Account

A bank account that allows the holder to deposit and withdraw money and write checks.

Postdated Check

A check written with a future date, preventing it from being cashed or deposited until that date.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure they are in agreement.

Deposit in Transit

Funds that have been deposited by a company in its bank account but have not yet been recorded by the bank, leading to a timing difference in the company's accounting records.