Which of the Following Is True of Manufacturing in the Future

question 16

Multiple Choice

Which of the following is true of manufacturing in the future?

• A) Almost no inventory.
• B) Direct links to customers or end users.
• C) Mixing custom-made items and long production runs
• D) All answers are correct.

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Definitions:

Finished Goods

Items that are ready after production but still await sale or delivery to consumers.

Underapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred during a period.

Direct Materials Cost

The total cost of raw materials directly involved in the manufacturing of a product.