Under the ABC Philosophy

question 23

Multiple Choice

Under the ABC philosophy

• A) all inventories should be reduced or eliminated.
• B) the push approach should be used in the first department of a process and the pull approach should be used in all subsequent departments.
• C) the cost of a product is equal to the sum of the costs of all activities performed to manufacture it.
• D) only one cost driver can be used.

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Definitions:

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer.

Distribution

The process of making a product or service available for the consumer or business user who needs it, including storage, transport, and delivery stages.

Stages

The distinct phases or periods in a process or lifecycle, each with its own characteristics and requirements.

Product Availability

Product availability refers to the degree to which a product can be purchased or is in stock at a given time.