When a Customer Purchases a DVD at a Best Buy

question 42

Multiple Choice

When a customer purchases a DVD at a Best Buy electronics store, all of the following information flows in the supply chain are started EXCEPT

• A) the sales associate scans the UPC recording the sale.
• B) the sale is transmitted to Best Buy's distribution center to adjust inventory data.
• C) the purchase is added to the customer's purchasing habit records.
• D) Best Buy's buyer aggregates sales at all stores and uses the information to send a reorder to the manufacturer.
• E) the point-of-sale terminal records the sale and sends it to Best Buy's buyer.

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Definitions:

Volume Variance

A measure of the difference between the budgeted and actual volume of production, impacting costs.

Overhead Variances

The difference between actual overhead costs and the budgeted or standard overhead costs.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the costs are actually incurred.

Labor-Hour

A unit of measure representing one hour of work by an employee, often used in costing and budgeting processes.