Consignment Inventory Requires That Manufacturers

question 114

Multiple Choice

Consignment inventory requires that manufacturers:

• A) deliver their products to the consumer and payment from consumers is based on supply.
• B) stock their products on retail stores shelves and payment from consumers is based on forecast.
• C) deliver their products to the consumer and wait for payment until consumers requires to refill stock level.
• D) stock their products on retail stores shelves and wait for payment until consumers purchase the product.

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Definitions:

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet the production needs of a company over a specific period.

Direct Labor-Hours

The total hours of work directly contributed by laborers to produce goods, often used in costing and productivity calculations.

Direct Labor Rate

The cost of labor per hour for workers directly involved in the manufacturing process.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping manage liquidity and ensuring availability of cash.