The Effect of More Consumers Leaving a Town to Purchase

question 112

Multiple Choice

The effect of more consumers leaving a town to purchase goods rather than entering it to buy the same product is known as

• A) Inshopping
• B) Outshopping
• C) Outsourcing
• D) Inhouse shopping

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Definitions:

Operating Departments

Departments within an organization that are directly involved in producing the company's goods or delivering services, as opposed to administrative departments.

Process Costing

A costing method used in industries where production is continuous and units are identical, assigning costs to units of product based on the process they go through.

Inventory

An asset that represents the total amount of goods and or materials a company holds for sale or production in the normal course of business.

Equivalent Units

A concept in process costing that converts partially completed units into a number of equivalent full units.