Which statement about non-stock sales is true?

Which statement about non-stock sales is true?

• A. They require inventory to be kept on-hand at all times.
• B. They are the same as stock sales.
• C. They involve shipments that are placed directly into inventory before sale.
• D. They are sales not placed in inventory, such as brokerage, dock to dock, and drop shipments.

Answer: (D)

Non-stock sales are fulfilled without keeping the product in your own inventory. The goods aren’t held on-hand in your warehouse; instead you arrange for the supplier or carrier to deliver directly to the customer, or you act as a broker who connects buyer and seller. This is why the description includes roles like brokerage, dock-to-dock, and drop shipments—the sale is completed without the item entering your stock records. Think of it as selling through a conduit rather than stocking the item yourself. The other options imply holding inventory, treating the sale as if it were stock, or moving shipments into inventory first, which contradicts the idea of non-stock sales.

Non-stock sales are fulfilled without keeping the product in your own inventory. The goods aren’t held on-hand in your warehouse; instead you arrange for the supplier or carrier to deliver directly to the customer, or you act as a broker who connects buyer and seller. This is why the description includes roles like brokerage, dock-to-dock, and drop shipments—the sale is completed without the item entering your stock records.

Think of it as selling through a conduit rather than stocking the item yourself. The other options imply holding inventory, treating the sale as if it were stock, or moving shipments into inventory first, which contradicts the idea of non-stock sales.