Upstream costs for a merchandising entity include:
i. design.
ii. research and development.
iii. distribution.
iv. customer support.
A) iii and iv
B) i and iii
C) i, ii and iii
D) None of the given answers

Question

Quizplus · Accepted Answer

Upstream costs for a merchandising entity typically involve costs incurred before the actual purchase of goods for resale, such as design and research and development. Distribution and customer support are considered downstream costs, related to delivering products to customers and post-sale support. However, in the context of a merchandising entity, which primarily buys and sells goods without transforming them, neither design nor research and development are typically relevant costs, as these activities are more associated with manufacturing entities. Therefore, none of the given options accurately represent upstream costs for a merchandising entity.

Upstream Costs for a Merchandising Entity Include