The Production Planner Determines What Inventory Is Need for Future

question 31

Multiple Choice

The production planner determines what inventory is need for future production using

• A)finished goods inventory status report for the product being produced.
• B)bill of materials for the product being produced.
• C)standard costs for the product being produced.
• D)manpower availability report from human resources.

Distinguish between the implementation complexities of compression and lean supply chains in global versus domestic contexts.

Understand the balance between standardization and customization in global markets.

Acknowledge the role of technological innovations like water desalinization and fracking in economic advantage.

Recognize the significance of Regional Trade Agreements (RTAs) and examples like the European Union (EU).

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Definitions:

Variable Costs

Costs that vary directly with the level of production output or sales volume, such as materials and labor.

Activity Level

The volume of work or the number of transactions handled by a business or department, which can drive the allocation of costs based on activity-based costing principles.

Fixed Costs

Overheads that stay the same no matter the quantity of goods produced or sold, like rent, salaries, and insurance.

Activity Level

A measure of the volume of work or production capability, often used in cost accounting to determine appropriate cost allocations.