Why Is 1896 Considered an Extremely Important Year for Direct

question 15

Multiple Choice

Why is 1896 considered an extremely important year for direct mail advertising and mail-order selling?

• A) Advertising agencies were allowed to charge commissions for their services.
• B) The U.S. Post Office was created.
• C) The Office of Consumer Affairs guaranteed that consumers could return products that did not meet their needs.
• D) The Federal Communications Commission took control of all mail order and direct mail advertising.
• E) The federal government inaugurated rural free mail delivery.

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Definitions:

Work in Process

Inventory that includes goods that are in the process of being manufactured but are not yet completed.

Predetermined Overhead Rate

A predetermined overhead rate is calculated before a period begins and is used to apply manufacturing overhead costs to products based on a common activity base, such as machine hours or labor hours.

Direct Labour

The workforce directly involved in the manufacturing of products or the delivery of services, whose costs are directly attributable to the production process.

Direct Material

Raw materials that are directly incorporated into a finished product.