That Portion of Projected Inventory Which Enables Marketing to Make

question 30

Multiple Choice

That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:

• A)beginning inventory.
• B)safety stock inventory.
• C)available-to-promise inventory.
• D)marketable inventory.
• E)banked inventory.

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Definitions:

Variable Overhead

Costs that change with the level of production or service activities.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Absorption Costing

A costing method that includes all manufacturing costs (both fixed and variable) in the cost of a product.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.