Chadwick's Sends Its Customers Booklets Containing Its Product Offerings and Allows

question 227

Multiple Choice

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

• A) online retailer.
• B) direct seller.
• C) catalog marketer.
• D) direct-response marketer.
• E) specialty retailer.

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Definitions:

Direct Material

Raw materials that are directly involved in the production process of a product and can be easily traced to it.

Steel

An alloy of iron and carbon (and possibly other elements) that is hard, strong, and used as a structural and fabrication material.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.

Period Costs

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative costs, and are expensed in the period they are incurred.