Which of the Following Statements Holds True About the "Direct

question 28

Multiple Choice

Which of the following statements holds true about the "direct sales by manufacturer" model?

• A) no matter who the manufacturer sells to, there are no variations of this model
• B) is the use of the web by product manufacturers to sell their products directly to customers
• C) this model does not result in channel conflict
• D) the manufacturer cannot compete through reintermediation
• E) all of the above

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Definitions:

Direct Labor-Hours

A measure of the amount of time spent by workers directly involved in the manufacturing process, used in calculating labor costs and efficiency.

Journal Entry

A record in the accounts of a business, documenting a financial transaction with both debit and credit parts.

Direct Labor Costs

Expenses associated directly with the manufacturing of a product, including wages of workers actually making the product.

Indirect Labor Costs

Costs associated with employees who do not directly work on the product but are necessary for the manufacturing process.