A Purchased Good That Can Have a Big Effect on Profitability

question 63

Short Answer

A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a(n)________ item.

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Definitions:

Factory Payroll

Factory Payroll includes the total compensation paid to employees working within the manufacturing operations, directly involved in producing goods.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product.

Raw Materials

Basic materials that are used in the initial stages of the production process, before being transformed into finished products.

Inventory Accounts

Inventory accounts are accounting records that track the quantity and value of goods that a company holds for sale in the ordinary course of business.