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When employees exercise share options, the company records the gross proceeds received from the employees exercising options as cash inflows from investing activities.
Prevention Costs
Expenses incurred to prevent defects in products or inefficiencies in services.
Delivery Cycle Time
The total time taken from receiving a customer order to the delivery of the product, measuring the efficiency of order fulfillment.
Fill Orders
The process by which companies prepare and deliver products or services as requested by customers in purchase orders.
External Failure Cost
Costs incurred when products fail to meet quality standards after being delivered to the customer, including returns, repairs, and warranties.
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