Risk Associated with the Time Required to Search for the Product

question 85

Multiple Choice

Risk associated with the time required to search for the product and the time necessary for the product to be serviced or maintained is known as _____.

• A) financial risk
• B) physical risk
• C) long-term risk
• D) time risk
• E) social risk

---

Definitions:

Cost Of Merchandise Sold

The total cost incurred to purchase or produce the goods that have been sold to customers during a specific period.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the amount before deducting operating expenses.

Cost Of Merchandise Sold

The total expense incurred by a business to purchase or manufacture the goods sold during a period.

Merchandise Inventory

The total cost of all goods held by a company that are available for sale to customers, part of current assets on the balance sheet.