Which of the Following Is an Advantage of Distributor Storage

question 40

Multiple Choice

Which of the following is an advantage of distributor storage with carrier delivery?

• A)Inventory cost is higher than with manufacturer storage.
• B)Product variety is lower than with manufacturer storage.
• C)Order visibility for the customer is easier than with manufacturer storage.
• D)Higher cost to provide the same level of product availability as manufacturer storage.

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Cost of Merchandise Sold

The total cost incurred to acquire goods that have been sold during a period, including purchase price and other expenses related to procurement.

FOB Shipping Point

A term indicating that the buyer takes ownership and pays for transportation costs once the goods leave the seller’s premises.

Inventory Cost

The total cost associated with purchasing and producing the inventory a business holds, including the costs of materials, labor, and overhead.