Under Which of the Following Conditions May a Manufacturer Wish

question 24

Multiple Choice

Under which of the following conditions may a manufacturer wish to have its own sales force?

• A) The manufacturer is a small player in its category.
• B) The market for its products is geographically concentrated.
• C) The products require minimal presale and postsale services.
• D) The market consists of many small customers.

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Definitions:

Journal Entry

A record in the books of accounts that documents a business transaction in terms of debits and credits.

Adjusting Entries

Fiscal period closing entries in accounts to properly assign incomes and expenditures to the interval in which they factually took place.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, covering future periods.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, recognizing it as an expense.