Which of the Following Statements Is True of Backorders

question 22

Multiple Choice

Which of the following statements is true of backorders

• A) They occur as a result of excessive stock.
• B) They occur when a customer is unwilling to wait for an ordered item.
• C) They result in additional costs.
• D) They force a customer to purchase elsewhere.

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Definitions:

Labor-Related

Refers to factors or issues that pertain to the workforce or employment sector, including wages, working conditions, and labor laws.

Direct Labor-Hours (DLH)

The total hours worked by employees who are directly involved in the production process of goods or services.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the resources they consume.

General Factory

Refers to all aspects and activities of a manufacturing site, including production, maintenance, and administrative areas.