Wilson Wholesalers,an Electrical Component Distributor,charges Customers Separate Amounts for Various

question 34

Multiple Choice

Wilson Wholesalers,an electrical component distributor,charges customers separate amounts for various services,such as inspecting components prior to packaging,using priority shipping,and sorting components by part number.Which term best describes the strategy used by Wilson Wholesalers?

• A) fee for service model
• B) activity-based costing
• C) service consolidation
• D) fragmentation
• E) bundling

---

Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian retirement savings vehicle that offers tax benefits.

Ordinary Annuity

Definition: An annuity for which the payment or receipt of funds happens at the end of each period.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, resulting in 'interest on interest.'

Compounded Monthly

Interest on a deposit or loan is calculated each month and added to the principal, increasing the amount on which future interest is computed.