Jordan Is Working to Find Ways to Better Her Company's

question 7

Multiple Choice

Jordan is working to find ways to better her company's movement of materials and goods from the warehouse to the factory floor. Jordan is looking into ways of making her firm's ________ more efficient.

• A) internal logistics
• B) outbound logistics
• C) materials handling
• D) factory processes

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.

Absorption Costing

A cost accounting procedure that comprises adding up all expenses involved in manufacturing—direct materials, direct labor, and manufacturing overhead, both fixed and variable—to the cost of the product.