A Primary Disadvantage of Using an Outside Supplier Is That

question 57

True/False

A primary disadvantage of using an outside supplier is that the supplier may not be able to deliver the needed parts or components on a timely basis.

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Definitions:

Profit Center

A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.

Margin

Net operating income divided by sales.

Turnover

Sales divided by average operating assets.

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing the value-added production time to the total production time.