Number of Purchase Orders Is an Example of A(n)

question 21

Multiple Choice

Number of purchase orders is an example of a(n) :

• A) Cost driver
• B) Cost pool
• C) Allocation rate
• D) Pool rate

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Definitions:

Supply-Chain Management

The managing of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Drop Shipment

A supply chain method where the seller takes orders but the product is shipped directly from the manufacturer to the buyer.

Distribution System

The methodological way in which a business delivers its goods or services to its customers. This encompasses transportation, warehousing, order fulfillment, and more.

Intermediate Goods

Products that are used in the production of final goods and services, rather than being sold directly to consumers.