Which of the Following Statements Is True with Regard to the Primary

question 72

Multiple Choice

Which of the following statements is true with regard to the primary firm,wholesalers,and retailers?

• A)A primary firm may have many wholesalers and retailers.
• B)Retailers receive goods directly from the primary firm and sell to wholesalers.
• C)Wholesalers sell directly to customers.
• D)A primary firm does not sell directly to customers.

---

Definitions:

Direct Labor Price Variance

The difference between the expected cost of direct labor and the actual cost incurred.

Standard Hours

The predetermined amount of time expected to be required to complete a task or produce a unit of product under normal conditions.

Actual Rate

Often refers to the real, current exchange rate in currency markets, or the real rate of interest or return on investment.

Quantity Variance

Measures the difference between the actual amount of materials or labor used in production and the amount that should have been used, according to standards.