Which of the Following Activities Would a Drop Shipper Be

question 68

Multiple Choice

Which of the following activities would a drop shipper be most likely to perform?

• A) Provide delivery services from a wholesaler's warehouse to a retailer's store
• B) Solicit orders from a retailer and arrange for the producer to make the deliveries
• C) Manage a large stock of items in a single product category, and make large volume shipments to other intermediaries using rail or truck
• D) Provide brokerage services by helping other wholesalers negotiate deals

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Definitions:

Equivalent Units

A concept in cost accounting used to calculate the cost of partially finished goods, converting them into an equivalent number of fully finished units.

FIFO Method

A inventory valuation method where the first items produced or acquired are sold or used first.

Work in Process Inventory

Products that are currently under production but have not yet reached completion.

Weighted-Average Method

An inventory costing method that assigns cost based on the average cost of goods available for sale during the period.