A College Bookstore That Purchases Goods from Over 200 Vendors

question 23

Multiple Choice

A college bookstore that purchases goods from over 200 vendors demonstrates _____.

• A)economies of scale
• B)a channel of distribution
• C)the sorting process
• D)vertical integration

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Definitions:

Original Voucher

A primary document used as a piece of evidence for a transaction that has occurred, supporting entries in an accounting system.

Net Method

A pricing strategy where the sale price of a good or service includes all discounts and is not subject to additional discounts at the time of payment.

Periodic Inventory System

An inventory management method where stock levels and the cost of goods sold are calculated at set intervals.

Terms 2/10, N/30

Payment terms indicating that a buyer can take a 2% discount if the bill is paid within 10 days, with the net amount due in 30 days.