Which of the Following Is True of Store Brands

question 81

Multiple Choice

Which of the following is true of store brands?

• A) Store brands are limited in variety when compared to national brands.
• B) These products are sold to competing retailers.
• C) They are labeled only with the commodity name and have no distinguishing brand names.
• D) Retailers develop the design for these products in most cases.
• E) National brand vendors are not involved in the development of these products.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.

Operating Activities

Cash flow actions related to the day-to-day operations of a business, such as receiving cash from customers and paying suppliers.

Direct Method

An allocation method that directly assigns service department costs to producing departments without any intermediate allocations.