Managing the Consumption of Services Organization-Wide

question 4

Multiple Choice

Managing the consumption of services organization-wide:

• A)is easy because organization-wide services spend data is readily accessible.
• B)is of little concern because annual spend for services is declining in most organizations.
• C)is easy because forecasting aggregate demand for services is typically more reliable than forecasting demand for goods.
• D)is easy because supply management has historically had responsibility for managing services spend.
• E)is difficult because multiple contracts may exist at varying prices and terms with the same suppliers.

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Definitions:

Job Cost Sheet

A document or record that tracks the expenses associated with a specific job or project, including materials, labor, and overhead costs.

Job Cost Sheets

Are documents used in cost accounting to record the materials, labor, and overhead costs associated with a specific job or project.

Actual Direct Material

The raw materials physically used in the manufacturing process, measured against the planned or standard materials cost.

Actual Manufacturing Overhead

The real costs incurred during production that are above direct labor and materials, including utilities, depreciation, and maintenance.