Drop Shipment

question 13

Multiple Choice

Drop shipment

• A) is equivalent to cross-docking
• B) is the opposite of a blanket order
• C) means the supplier will ship directly to the end consumer, rather than to the seller
• D) is the same thing as keiretsu
• E) is a good reason to find a new firm to ship your products

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Definitions:

Ending Inventory

The total value of all the goods remaining unsold at the end of an accounting period.

Cost of Goods Sold

Costs directly connected with the manufacture of goods a company sells, including both materials and workforce expenses.

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.