Wholesalers That Own the Merchandise They Sell but Do Not

question 88

Multiple Choice

Wholesalers that own the merchandise they sell but do not physically handle,stock,or deliver it are referred to as

• A)cash and carry wholesalers.
• B)rack jobbers.
• C)truck jobbers.
• D)manufacturer's representatives.
• E)drop shippers.

---

Definitions:

Revenue Forgone

The potential income that is given up when choosing one alternative over another; essentially, it's the opportunity cost of revenue not earned.

Differential Analysis

A decision-making process that looks at the difference in costs and benefits between alternative choices.

Product Cost Distortion

When the allocated costs of manufacturing a product do not accurately reflect the actual costs, leading to incorrect pricing or profitability analysis.

Total Cost Concept

A management accounting concept that includes all costs, both fixed and variable, incurred in producing a product or delivering a service.