A Farmer Grows Wheat and Sells It to a Bakery

question 150

Multiple Choice

A farmer grows wheat and sells it to a bakery for $5.The bakery bakes the wheat into bread,which it sells to a distributor for $20.The distributor sells the bread to a supermarket for $30,which sells the bread to customers for $50.Which of the following is true?

• A)The value added by the distributor is $30.
• B)The supermarket contributed more,in value added,than the bakery.
• C)As a result of this activity,GDP rises by $50 minus the value added at each stage of production.
• D)Counting the value added at each stage instead of the final selling price creates a serious problem of double counting.
• E)The value added by the farmer is $20 because the wheat,which is worth $5,is necessary for each of the three remaining stages of production.

Gain knowledge on the dynamics of budgeted production based on sales forecast and inventory policies.

Learn the process of calculating expected cash collections from sales on credit.

Understand the significance of maintaining optimal inventory levels in budgeting.

Develop skills to estimate and plan for direct labor costs based on production budgets.

---

Definitions:

Over-the-Top (OTT)

Delivery of film and TV content via the internet, without requiring users to subscribe to traditional cable or satellite pay-TV services.

Streaming Options

Various digital platforms and services that allow users to watch video content over the internet without the need for downloading.

Internet of Things (IoT)

A network of interconnected devices that can collect and exchange data using embedded sensors, providing automation and insights in various sectors.

Pioneering

Being the first to use or apply a new method, area of knowledge, or activity.