If a Distributor's Margins Are Based on the "Landed" Price

question 66

Multiple Choice

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

• A)ex-works price.
• B)transportation costs.
• C)insurance costs.
• D)VAT.
• E)all of the above

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Definitions:

Direct Costs

Direct costs are expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Merchandising Company

A business that purchases finished goods for resale, aiming to make a profit without changing the form of the goods.

Cost of Goods Sold

The direct costs related to the production of the goods that a company sells, including materials and labor.

Indirect Manufacturing Cost

Costs that are not directly traceable to specific units produced, such as utilities or rent for manufacturing facilities.