The Consolidation of Several Units into Larger Units for Fewer

question 27

Multiple Choice

The consolidation of several units into larger units for fewer handlings is called:

• A) unitization
• B) consolidation
• C) cube utilization
• D) packaging
• E) materials handling.

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Definitions:

Absorption Costing

A calculation approach that encompasses all expenses of production, such as materials, labor, and all overheads, both variable and fixed, in determining a product's price.

Variable Production Costs

Costs that vary directly with the level of production, such as raw materials and direct labor.

Absorption Costing

This approach to bookkeeping encompasses all production-associated expenses, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, in calculating the product's price.

Operations

Refers to the ongoing activities of a business involved in the production or provision of goods and services.