Which of the Following Is a Benefit That Fmns Should

question 37

Multiple Choice

Which of the following is a benefit that fmns should expect to gain from the use of horizontal integration?

• A)Reduced risk of corning into conflict with the FTC
• B)Better realization of economies of scale
• C)Greater control over the entire supply chain
• D)Reduced risk of holdup
• E)Reduced need for investment in core activities

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Definitions:

Gross Margin

The difference between sales revenue and cost of goods sold, shown as a value or percentage, indicating the efficiency of sales relative to production costs.

Gross Sales

Gross sales represent the total sales revenue of a company without any deductions for returns, allowances, or discounts.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made periodically at the end of an accounting period, rather than continuously.

Purchases Account

An account used in accounting to record goods acquired for resale during a particular period.