When Walmart Is Evaluating Between Trucking and Using the Train

question 82

Multiple Choice

When Walmart is evaluating between trucking and using the train to distribute their products from warehouse to store, they note that using the train can only occur once per week, while trucking can happen every day. These two modes are likely being evaluated on:

• A)frequency
• B)capability
• C)time
• D)cost

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Definitions:

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages out all costs of goods available for sale during the period.

Manufacturing Activity

A set of processes involved in transforming raw materials into finished products.

Labor and Overhead

The combined costs of direct labor and indirect expenses incurred during production.

Assembly Department

is a section in manufacturing where components are assembled into final products.