A Retailer Might Expect a Stocking Allowance

question 173

Multiple Choice

A retailer might expect a stocking allowance:

• A) for paying the supplier's invoice before the product is delivered.
• B) to pass along to retail salesclerks who aggressively sell the product.
• C) to offset the handling costs for a new product.
• D) if the manufacturer can't fill an order by the promised delivery date.
• E) None of these-stocking allowances only apply to wholesalers.

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Definitions:

Bailor

The person who temporarily transfers possession but not ownership of a property or good to another (the bailee) under a bailment agreement.

Bailee

A person or entity to whom personal property is delivered for a specified purpose without transfer of ownership.

Transfer Of Possession

The act of moving control or ownership of an asset from one party to another.

Bailee

A Bailee is a person or entity that has temporary possession of someone else's property under a bailment agreement.