The Decision Made by the Design Team and the Order

question 31

Multiple Choice

The decision made by the design team and the order placed by the procurement team indicate that the type of buy made by Claystone is a:

• A)new buy.
• B)supplier buy.
• C)modified rebuy.
• D)discount buy.
• E)straight rebuy.

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Definitions:

Standard Costs

Predetermined or estimated costs to manufacture a product or provide a service, used in budgeting and measuring performance.

Budgeted Cost Systems

Accounting methods that use budgets to project costs and revenues, helping companies plan for future operations and financial performance.

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

Standard Cost

A detailed estimate of what a product should cost.