A Bill of Material Lists the

question 105

Multiple Choice

A bill of material lists the

• A) times needed to perform all phases of production
• B) production schedules for all products
• C) components, ingredients, and materials required to produce an item
• D) operations required to produce an item
• E) components, ingredients, materials, and assembly operations required to produce an item

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Definitions:

Operating Cycle

The period it takes for a business to buy inventory, sell it to customers, and collect the cash from these sales.

Credit Sales

Revenues earned by selling goods or services that are paid for over time under agreed payment terms, rather than paid in full upfront.

COGS

Acronym for Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Inventory Turnover Rate

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.