Which of the Following Is True of Direct Distribution

question 161

Multiple Choice

Which of the following is true of direct distribution?

• A) It requires a significant investment in facilities.
• B) It reduces a producer's need for working capital.
• C) Direct distribution always serves customer needs better and at a lower cost.
• D) Most firms selling consumer products rely on direct distribution.
• E) It is easy to change customer buying patterns from indirect distribution to direct distribution.

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Definitions:

Invoice

A document issued by a seller to a buyer that lists the products or services provided, along with quantities, prices, and payment terms.

Net Price Method

An accounting method that records purchases at the net price, after deducting any discounts, rather than recording them at the gross price.

Catalog Price

The listed price of goods or services in a catalog, before any discounts or adjustments.