Less Exposed to Risk in Case of Schedule Change by the Customer

question 5

Multiple Choice

Less exposed to risk in case of schedule change by the customer is an advantage of:

• A) Forward scheduling
• B) Backward scheduling

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Definitions:

Direct Labor Cost

The cost that can be directly attributed to the production of specific goods or services, such as wages of employees directly involved in production.

Predetermined Manufacturing Overhead

An estimated rate used to assign manufacturing overhead costs to cost objects during a specific period, calculated before the period begins.

Direct Labor-hour

A measure of the total time workers or employees spend creating a product, which is used in calculating the labor cost involved in production.

Finished Goods Inventories

Products that have completed the manufacturing process but have not yet been sold to customers.