Which of the following is characteristic of B2C transactions as opposed to B2B transactions?
A) Sales cycles are shorter, usually under a month.
B) Businesses sell to only a few large buyers.
C) Customer orders tend to be much larger.
D) There is a close buyer-seller relationship.
A
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Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year cost $600,000 . Budde produced 10,00 . gallons of X15, which sells for $40 per gallon and 40,00 . gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint cost should be allocated to X15?
a. $200,000 b. $400,000 c. $120,000 d. $150,000
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