What Is a Back Order

question 83

Multiple Choice

What is a back order?

• A) An unfilled customer order for a product that is out of stock
• B) The time it takes to manufacture a product and deliver it to the retailer
• C) The agreed-upon time between the purchase of a product and the delivery of the product
• D) The frequency of inventory replacement.

---

Definitions:

Unfavorable Effect

A situation or outcome in financial analysis or performance metrics where actual results are worse than planned or expected results.

Variances

Discrepancies between planned financial outcomes and the actual results, used in budgeting and accounting to analyze and control costs.

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Standard Quantity

This refers to the predefined amount of materials or labor deemed necessary to produce a single unit of a product under normal operations.