Which of the Following Is True of Retailers

question 98

Multiple Choice

Which of the following is true of retailers?

• A) They buy raw materials,components,and parts that allow them to manufacture their own goods.
• B) They are a form of resellers.
• C) They resell manufactured products by significantly altering their form.
• D) They are one of the largest purchasers of goods and services in most countries.
• E) They are the prime producers of household products.

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Definitions:

Setup Labour

The work and time involved in preparing equipment or machines for a new production run, often considered a manufacturing overhead cost.

Setup For One Run

The preparation and adjustment activities required to switch a production process or machine from making one product or batch to another.

Activity Cost

The financial sum associated with carrying out a specific business task or operation, usually involved in budgeting and accounting.

Activity-based Costing System

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, providing more precise costing information.