Unlike Merchant Wholesalers, ________ Never Actually Own the Goods They

question 112

Multiple Choice

Unlike merchant wholesalers, ________ never actually own the goods they help to distribute.

• A) rack jobbers
• B) retailers
• C) cash-and-carry wholesalers
• D) agents and brokers

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Definitions:

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

Indirect Costs

Costs that are not directly traceable to a single product or operation, such as overhead.

Opportunity Costs

The potential benefit missed out on when choosing one alternative over another.

Conversion Cost

Conversion cost is the sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.