The Practice of Buyers Allowing Suppliers to Observe Their Demand,create

question 52

Multiple Choice

The practice of buyers allowing suppliers to observe their demand,create a forecast,and determine their resupply schedules in the hopes of reducing inventories is called:

• A) Order Batching
• B) Forward Buying
• C) The Legacy System
• D) VMI

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Definitions:

Factory Insurance

A type of insurance policy that provides coverage against losses or damages to a manufacturing facility and its operations.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Factory Equipment

Assets used in the production process to manufacture goods, typically considered as fixed assets in accounting.

Costs of Goods Manufactured Schedule

A detailed accounting that shows the total production costs for a company over a specific period, including direct labor, materials, and overhead.