Which of the Following Is Not an Example of a Question

question 43

Multiple Choice

Which of the following is not an example of a question that should be asked when evaluating a supplier's production scheduling and control systems?

• A)Does the supplier use a requirements planning system as part of an ERP system to ensure the availability of required components or meet service requests on a timely basis?
• B)What lead time does the supplier's production scheduling and control system require?
• C)What is the supplier's on-time delivery performance history?
• D)Does the supplier's scheduling system support a purchaser's delivery requirements?
• E)What safeguards are in place to protect the confidentiality of electronic transfers?

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Definitions:

Job Order Cost System

An accounting method used to accumulate costs related to a specific job or order, tracking direct materials, direct labor, and overhead applied to that job.

First-in, First-out Method

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and remaining inventory.

Equivalent Units

A term used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Cost of Production Report

A document used in process costing that summarizes the amounts of costs for materials, labor, and overhead and assigns them to produced units.