Which of the Following Is Considered a Customer-Level Activity

question 72

Multiple Choice

Which of the following is considered a customer-level activity?

• A)Ordering direct materials used in all products
• B)Engineering changes made that will affect all products
• C)Cleaning the machines before beginning production
• D)Processing a sales order

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Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding deductions of interest and taxes.

Absorption Costing

A costing method that includes all manufacturing costs - both fixed and variable - in the cost of a product.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before taxes and interest are deducted.