A Furniture Company Uses an Online System to Record and Monitor

question 8

Multiple Choice

A furniture company uses an online system to record and monitor orders and, based on trends, redirects production resources to optimize efficiency. This is an example of using ________ to reduce costs.

• A)Six Sigma
• B)flexible manufacturing
• C)process reengineering
• D)total quality management (TQM)
• E)customer relationship management (CRM)

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Definitions:

Freight Out

The cost associated with transporting goods from a company to its customers, considered a selling expense.

Purchase Discounts

Reductions in the cost price of goods or services, offered by suppliers to buyers as an incentive for early payment.

Net Income

The amount of profit left over after all expenses, taxes, and costs have been subtracted from total revenue.