The Only Source of Revenue in the Supply Chain Is

question 10

Multiple Choice

The only source of revenue in the supply chain is the

• A) sales department.
• B) cash register.
• C) end consumer.
• D) purchasing department.
• E) manufacturer.

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Definitions:

Gross Profit

The subtract of cost of goods sold from net sales, indicating the efficiency of a company in managing its production and labor costs.

Factory Overhead

Factory overhead encompasses all the indirect costs involved in manufacturing a product, which may include utilities, maintenance, and management salaries, excluding direct materials and labor costs.

Direct Labor Costs

The total cost of all the labor force that is directly involved in the production process, measured by wages, salaries, and benefits of those who actually work on the product directly.

Overapplied

A situation where the overhead allocated to goods produced exceeds the actual overhead incurred.