Large Retail Chains,unlike Smaller Chains,are Able to Merchandise Their Own

question 12

Multiple Choice

Large retail chains,unlike smaller chains,are able to merchandise their own _____ brands,and because these brands can be sold at lower prices than manufacturers' comparable brands,large chains are able to use their brands to satisfy the needs of price-sensitive consumers while selling manufacturers' brands at their normal price and pocketing the trade allowance as extra profit.

• A) generic 
• B) private 
• C) national 
• D) regional 
• E) local

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Definitions:

Work in Process Inventory

The value of materials, labor, and overhead costs for products that have been started but are not yet completed in the manufacturing process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on expected costs and activity levels.

Indirect Labour

Labor costs associated with workers not directly involved in the production of goods or services.

Direct Labour Costs

The wages and benefits paid to employees who are directly involved in the production of goods or services.