An Ice Cream Maker Requires Approximately Two Months from the Time

question 125

Multiple Choice

An ice cream maker requires approximately two months from the time a new flavor is decided on in the corporate board room to the time it is produced and available to consumers in stores.This time is called

• A) competitive advantage time.
• B) information technology time.
• C) cycle time.
• D) production time.
• E) made-to-order time.

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing plant, applied uniformly to all units produced.

Volume-related Measures

Metrics that are influenced by or correlate with the volume of production or sales.

Plantwide Overhead Rate Method

A single overhead absorption rate used across an entire factory or plant, applied to all units produced regardless of department or product line.

Unit Of Product

A unit of product is a standard measure of quantity or output which can be counted or used to quantify inventory, production, or sales in business operations.