Which of the Following Activities Would Be Most Closely Associated

question 271

Multiple Choice

Which of the following activities would be most closely associated with inbound logistics?

• A) Arranging equipment on the factory floor so that materials move smoothly and efficiently from one work station to the next
• B) Evaluating various shipping methods to find the most efficient way to transport goods to the final customer
• C) Establishing a program to encourage customers to return used products to the manufacturer so materials can be recycled
• D) Working with suppliers to establish a more frequent delivery system that will enable the manufacturing firm to hold smaller inventories of parts and materials

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Definitions:

Unit Variable Cost

The variable cost incurred to produce one unit of product, including direct materials, direct labor, and variable manufacturing overhead.

Monthly Sales

The total revenue generated from the sales of products or services within a month.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding income and expenses from unusual or non-operational activities.

Break-even Point

The level of production or sales at which total costs equal total revenues, resulting in no profit or loss.