An Auto Manufacturer Would Classify Vehicles in Various Stages of Production

question 94

Multiple Choice

An auto manufacturer would classify vehicles in various stages of production as

• A) finished goods.
• B) merchandise inventory.
• C) raw materials.
• D) work in process.

---

Definitions:

Lot-For-Lot

A production strategy where the quantity to be produced is based on the exact demand, avoiding excess production.

Setup Cost

The expenses incurred to prepare or set up equipment and processes for production or manufacturing, necessary for each production run.

Annual Volume

Refers to the total quantity of products manufactured, sold, or consumed over the course of a year.

Distribution Resource Planning

A method used in business logistics management for planning orders within a supply chain, to ensure that distribution is completed efficiently and inventory levels are kept optimal.