Target Has Its Own Trucks That Ship Merchandise to Its

question 172

Multiple Choice

Target has its own trucks that ship merchandise to its warehouses from the supplier for backstock purposes.Target is carrying out which of the following functions?

• A) Contracting with suppliers
• B) Standardizing and grading its facilities
• C) Buying and selling
• D) Risking obsolescence of its products
• E) Transporting and storing

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Definitions:

Consigned Merchandise

Goods that are sent by one party to another to sell, with payment to the consignor occurring only after the sale.

Consignee's Inventory

Goods that are held by a consignee but still legally belong to the consignor until sold, after which sales revenue is shared as per agreement.

Decreasing Costs

A situation where the total cost of production goes down as the volume of production increases.

LIFO Method

The LIFO (Last In, First Out) method is an inventory valuation technique where the latest items added to inventory are the first to be sold or used.