A Commonly Used Indirect Channel Moves Product from Producer to Retailer

question 190

Multiple Choice

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when the retailer is large and can buy in large quantities from a producer or when

• A)the cost of maintaining inventory is low.
• B)the cost of inventory makes it too expensive to use a wholesaler.
• C)there is little if any seasonal demand.
• D)the risk lies solely with the manufacturer.
• E)the retail outlets are regionally located.

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Definitions:

Credit Account Balance

A credit account balance refers to the total amount of credit available in a person's or organization's account, after considering all debits and credits.

Adjusting Entries

Documentation in financial records at the termination of an accounting period to allocate gains and expenses to the correct timeframe.

Trial Balance

A financial spreadsheet where all ledger balances are gathered into columns for debits and credits, ensuring both totals match.

Debit Column

The left-hand side of a ledger account, recording increases in assets and expenses, and decreases in liabilities, equity, and revenue.