A Middleman

question 249

Multiple Choice

A middleman

• A) attempts to prevent buyers from finding sellers.
• B) promotes trade by lowering the transaction costs of buyers and sellers.
• C) acts as a liaison between top management and the hourly employees.
• D) adds to the seller's expense and the buyer's price without providing a service to either.

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Definitions:

CVP Graph

A visual representation used in Cost-Volume-Profit Analysis to show the relationship between total costs, total sales, and profit (or loss) at various sales volumes.

Unit Volume

The quantity of items or units produced or sold.

Contribution Margin Ratio

The proportion of sales revenue that remains after variable costs are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and property taxes.