Describe the Difference Between SCM and Logistics

question 18

Essay

Describe the difference between SCM and logistics.

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Definitions:

Cost of Goods Manufactured

The total cost of producing goods in a given period, including labor, material, and overhead costs.

Cost of Goods Available

The total cost of inventory available for sale during a specific period, calculated as the sum of beginning inventory plus purchases during the period.

Inventories

Goods and materials that a business holds for the ultimate goal of resale or processing.

Underapplied Manufacturing Overhead

Underapplied manufacturing overhead occurs when the allocated manufacturing overhead costs are less than the actual costs incurred, indicating a shortfall that needs to be addressed in financial accounts.