Order-Getting Activities Are Divided into Two Categories

question 147

Multiple Choice

Order-getting activities are divided into two categories:

• A)missionary sales and technical sales.
• B)current-customer sales and new-business sales.
• C)order takers and trade sales.
• D)current sales and support sales.
• E)inside order sales and field order sales.

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Definitions:

Gross Profit Method

An accounting technique used to estimate the ending inventory and cost of goods sold by calculating the gross profit margin.

Destroyed Inventory

Goods that have been damaged or rendered unsellable, resulting in a loss for the business.

Retail Inventory Method

An accounting procedure for estimating the value of a store's merchandise by using a percentage of the retail prices.

Cost-to-Retail Ratio

The cost-to-retail ratio is a calculation used in inventory management to estimate the value of ending inventory at retail prices by considering the cost and retail value of goods available for sale.