The Simplest Channel of Distribution Is the Direct Channel

question 78

Essay

The simplest channel of distribution is the direct channel.What are the three advantages of a farmer selling strawberries grown on their farm directly to consumers?

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Definitions:

Supplies Account

An account used in accounting to keep track of the amount spent on supplies not yet used or consumed by the business.

Supplies Expense

The cost incurred from the consumption of supplies that are used in the operations of a business.

Adjusting Entry

An accounting entry made at the end of a period to allocate income and expenditure to the appropriate accounting period.

Unearned Subscription Revenue

Unearned Subscription Revenue is income received by a company for goods or services yet to be provided, recorded as a liability on the balance sheet.