________ Occurs When the Supplier, Rather Than the Retailer, Manages

question 82

Multiple Choice

________ occurs when the supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products.

• A) JIT
• B) The bullwhip effect
• C) Vertical integration
• D) VMI

---

Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are considered a variable cost.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor.

Factory Rent

Factory rent refers to the cost associated with leasing a premise for manufacturing operations, classified as an overhead expense in accounting.

Prime Costs

The sum of expenses for the raw materials and labor directly involved in the manufacturing of a product.