One Way Neighborhood Grocers Can Take Advantage of Volume Discounts

question 154

Multiple Choice

One way neighborhood grocers can take advantage of volume discounts commonly available to chains is to

• A)purchase a franchise membership.
• B)become a subsidiary of a larger chain.
• C)join a professional merchant association and hire legal counsel.
• D)create a grocery networking system to exchange coupon vouchers.
• E)participate in a retailer-sponsored cooperative with other independent grocers.

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Definitions:

Direct Material

Raw materials that can be directly traced to the production of a specific product and are a part of its finished composition.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision.

Financial Statements

Reports that summarize the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.