An Ideal Example of a Vertically Integrated Firm Will Be:​

question 55

Multiple Choice

An ideal example of a vertically integrated firm will be:​

• A)Sylvania, which produces light bulbs, notebooks, camcorders, and so on
• B)Kinko's, which has a photocopy store near many colleges and universities
• C)American Apparel, which controls the dyeing, finishing, designing, sewing, cutting, marketing and distribution of its product from a single building in downtown LA
• D)Intel, which makes computer chips for most of the computer manufacturers
• E)Hertz Car Rentals, which has offices that help people rent a car in one city and drop it off in another city

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Definitions:

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Merchandise Inventory Account

An account on a company's balance sheet that represents the products that a retail or wholesale company plans to sell.

Units of Inventory Purchased

The total quantity of items bought for resale or use in production during a specific period.