Replenishment Time Refers to

question 281

Multiple Choice

Replenishment time refers to

• A) the time lag from the inception of an idea until its initial commercialization.
• B) the time lag from ordering an item until it is received and ready for use or sale.
• C) the time between the commercialization of a product and general acceptance of the product as no longer "new."
• D) the time lag between a new product entering the market and the market entry of the product's first competitor.
• E) the time between when a new product is first promoted to its target market and when the product actually comes to the marketplace.

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Definitions:

Product Margin

The profit made from selling a product, calculated by subtracting the cost of manufacturing and selling that product from its sale price.

Machine-Hours

A measure of production time, indicating the hours that machines are in operation.

Number of Batches

The total count of groups or sets of items processed or produced together within a given time period, often used in manufacturing and quality control.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources, providing more accurate product cost information.