A Good Description of Source Inspection Is Inspecting

question 162

Multiple Choice

A good description of source inspection is inspecting:

• A) materials upon delivery by the supplier.
• B) the goods at the production facility before they reach the customer.
• C) the design specifications.
• D) goods at the supplier's plant.
• E) one's own work.

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Definitions:

Variable Cost

Expenses that vary in direct proportion to changes in the level of production or sales volume.

Fixed Cost

Costs that remain constant in total amount with changes in the volume of activity, such as rent and salaries.

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of activity but also containing a static element.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales that can decline before a business incurs a loss.