Which of the Following Is an Accurate Difference Between Straight

question 10

Multiple Choice

Which of the following is an accurate difference between straight rebuys and modified rebuys?

• A) Straight rebuys are considered when some aspects of a buying situation are unfamiliar, while modified rebuys are considered when organizations are experienced at buying a product.
• B) Straight rebuys involve routinely reordering products from same suppliers, while modified rebuys involve considering a limited number of alternatives before selection.
• C) Straight rebuys are followed by marketers who seek to win new organizational customers, while modified rebuys are followed by marketers who seek just-in-time inventory.
• D) Straight rebuys are used when a routine purchase changes in some way, while modified rebuys are used by organizations that do not have a reserve inventory.

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Definitions:

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life evenly, resulting in a fixed amount of depreciation expense each period.

Taxable Income

The portion of income that is subject to income tax, after deductions and exemptions.

Permanent Differences

These are differences between taxable income and accounting income that will not reverse in future periods.

Interperiod Income Tax Allocation

The process of allocating income taxes over various accounting periods because of temporary differences that cause taxable income to differ from accounting income.