Kingcade Corporation Keeps Careful Track of the Time Required to Fill

question 107

Multiple Choice

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The delivery cycle time was:

• A) 30.6 hours
• B) 2 hours
• C) 29.4 hours
• D) 11.1 hours

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Definitions:

Required Production

The quantity of goods a company needs to produce in a specific period to meet its sales goals and inventory requirements.

Budgeted Sales

Budgeted sales refer to the projected amount of sales (in units or revenue) that a company expects to achieve within a certain period, as outlined in its budget.

Credit Sales

Sales transactions in which the purchase amount is charged to the buyer’s account, to be paid at a later date.

Finished Goods Inventory

The stock of completed products that are ready to be sold to customers.