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Business Studies

Components of Physical Distribution

Following are...

Question

Following are activities which take place in a manufacturing concern except:

A

Processing raw materials into finished goods

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B

Purchases of merchandise for resale

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C

Sale of processed finished goods

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D

Purchases of raw materials

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Solution

The correct option is C Purchases of merchandise for resale
In a manufacturing concern, raw materials are purchased, processed into finished goods and then sold. Purchases of merchandise for resale is an activity of Trading concern.

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