What Is a Primary Difference Between Business and Consumer Buyers

question 60

Multiple Choice

What is a primary difference between business and consumer buyers?

• A) Consumer buyers require more product information than business buyers.
• B) Business purchases are made by one individual whereas families make consumer purchases together.
• C) Repeat sales are more common with consumer buyers than business buyers.
• D) Consumers primarily buy inexpensive items; businesses only buy expensive items.
• E) Business buyers generally make larger orders than consumer buyers.

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Definitions:

Completed

refers to goods or products that have undergone all stages of production and are ready for sale or distribution.

Weighted-Average Method

A cost accounting method that values inventory based on the average cost of goods available for sale during the period.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into the number of completed units they represent.

Materials

The raw inputs used in the manufacturing process to create a finished product.