Match Each of the Following Items with the Appropriate Description

question 49

Multiple Choice

Match each of the following items with the appropriate description in applying the P.L. 86-272 definition of solicitation.
-Checking the customer's inventory to determine whether a reorder is needed.

• A)More than solicitation, creates nexus
• B)Solicitation only, no nexus created

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Definitions:

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of a product.

Indirect Material

Materials used in the support of the production process but not directly a part of the finished product.

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production of goods or services.

Goals Met

A term indicating the achievement of predefined objectives or targets.