Industrial Product Lines That Are Offered Only in Certain Configurations

question 7

Multiple Choice

Industrial product lines that are offered only in certain configurations and are produced in anticipation of orders are called:

• A)custom-designed items.
• B)services.
• C)catalog items.
• D)custom-built items.
• E)component items.

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Definitions:

Period Costs

Expenses that are not directly tied to production activities, often including selling, general, and administrative expenses.

Total Manufacturing Costs

The sum of all costs directly involved in producing goods, including materials, labor, and overhead.

Work in Process

Inventory in various stages of production but not yet completed, representing the costs of materials, labor, and overhead invested in unfinished goods.

Value Chain

Value Chain is a model that outlines the full range of activities required to create a product or service, from initial conception through to the final sale.