Which of the Following Is the Best Example of a Direct

question 59

Multiple Choice

Which of the following is the best example of a direct channel?

• A)Family Dollar Store sells modelling clay to school-aged children.
• B)A wholesaler sells candy to convenience stores that then sell the candy to store patrons.
• C)A farmer sells corn to the Hughes household who will eat it for supper.
• D)A farmer in Colombia sells flowers to an international broker who makes sure the flowers reach consumers in Australia and New Zealand.
• E)J&L Manufacturing Company sells flat-pack desks to The Design Centre,and The Design Centre then sells it to consumers.

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Definitions:

Variable Costing

An accounting method that considers only variable costs in determining the cost of goods sold and evaluates profitability.

Direct Labor Cost

The total cost of wages paid to workers directly involved in the manufacturing or production of goods or services.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period, highlighting its profitability.

Unit Product Cost

The total cost associated with producing and delivering a single unit of product, including direct labor, materials, and overhead.