Which of the Following Is NOT an Example of an Agency

question 16

Multiple Choice

Which of the following is NOT an example of an agency arrangement where the selling entity would recognise revenue on a net basis?

• A) A travel agent selling an airline ticket to a customer, charging the customer $200 and remitting $180 to the airline.
• B) A supermarket selling groceries to a customer for $110 and remitting $10 GST to the government.
• C) A distributor receiving stock from its supplier on a sale-or-return basis. The sales price per unit is $120 and the cost per unit is $75
• D) A licensed hotel selling keno tickets to customers for $5.00 and remitting $4.50 per ticket to the state gaming authority.

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Definitions:

Total Quality Management

A comprehensive approach to long-term success that views continuous improvement in all aspects of an organization's operations as a process and not as a short-term goal.

Governmental Regulatory Agencies

Official organizations responsible for creating and enforcing rules and regulations to protect public interest in various sectors such as finance, health, and the environment.

Benchmarking

A process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Supply Chain

The network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.