Which of the Following Inventory Control Systems Can Be Beneficial

question 11

Multiple Choice

Which of the following inventory control systems can be beneficial to both the supplier and the customer,even if the two are separated by distances across the globe?

• A) ABC classification
• B) Economic order quantity
• C) Electronic data interchange
• D) Visual control

---

Definitions:

Operations

Refers to the day-to-day activities involved in running a business that lead to the production of goods and provision of services.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Absorption Costing

A bookkeeping technique that encases the entirety of manufacturing expenses such as direct materials, direct labor, along with both variable and fixed overhead costs, in the product’s cost.

Divisional Segment Margin

A measure of the profitability of a specific division or segment within a company, usually calculated as the division's earnings before interest and taxes divided by its revenues.