Which of the Following Classifications Would Be the Most Appropriate

question 68

Multiple Choice

Which of the following classifications would be the most appropriate for the cost of the manager of a retail distribution channel?

• A) customer-sustaining cost
• B) distribution-channel cost
• C) customer batch-level cost
• D) corporate-sustaining cost

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Definitions:

Inventory Item

Goods or merchandise kept on the premises of a business or warehouse and available for sale or distribution.

Historical Cost

The original cost at which an asset is acquired and recorded in the financial statements, not adjusted for inflation or market changes.

Replacement Cost

The cost to replace an asset of a company at the present time, according to its current worth.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods minus the costs of their sale or completion, used to value inventory or accounts receivable in the context of impairments or realizable value considerations.