A Retail Chain Hires a Company to Design and Install

question 58

Multiple Choice

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of the others in the chain for items requested by customers.In this scenario, the retail chain has purchased a(n) _____ good.

• A)support
• B)production
• C)convenience
• D)unsought

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Definitions:

Product Cost

Refers to the total expenses incurred to manufacture a product, including direct labor, direct materials, and manufacturing overhead.

Checkout Clerk

An employee who is responsible for handling the final processing of transactions at the checkout counter of a retail store, including customer payment and bagging of items.

Selling Expense

Expenses directly related to the selling of products or services, such as advertising, sales commissions, and promotional materials.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling and administrative expenses.