_________________Refers to the Process of Giving to a Supplier Certain

question 9

Short Answer

_________________refers to the process of giving to a supplier certain activities that were previously performed by the buying organization.

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Definitions:

Conversion Costs

Expenses incurred in the process of converting raw materials into finished goods, including labor and manufacturing overhead.

Direct Materials

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.

Direct Labour

The labor costs directly attributable to the production of goods or services, typically including wages of workers who are physically involved in creation of the product.

Variable Overhead

Expenses that fluctuate with changes in production volume, such as utilities or materials used in the manufacturing process.