Allen Inc,Which Produces Component Parts for Elevators,has Co-Located Its Engineering,logistics,and Procurement

question 63

Multiple Choice

Allen Inc.,which produces component parts for elevators,has co-located its engineering,logistics,and procurement divisions.Which of the following describes its demand-supply integration?

• A) The promises that salespeople make to customers present challenges to the company's logistics arm.
• B) Costs,more than customer specifications,determine which raw materials are placed into production.
• C) The company gains efficiencies from ordering and using only those materials that lead directly to sales.
• D) Raw material inventories are always stocked well above the levels dictated by production capacity.

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Definitions:

Preferred Dividends

Payments made to preferred shareholders, often at a fixed rate, that take precedence over dividends to common shareholders.

Common Dividends

Profits distributed to shareholders of common stock, reflecting the company's earnings and financial health.

Effective Tax Rate

The average rate at which an individual or business is taxed on their total income, after deductions and credits.

GAAP

Generally Accepted Accounting Principles, which are a collection of commonly followed accounting rules and standards for financial reporting.