A Major Benefit of Multiple Sourcing Is a Lower Price

question 18

True/False

A major benefit of multiple sourcing is a lower price that results from the higher volumes offered to a supplier.

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Definitions:

Direct Labor Cost

The wages and related expenses for employees who are directly involved in the production of goods or services.

Factory Labor Costs

Expenses associated with employing labor in a manufacturing setting, including wages, salaries, and benefits.

Manufacturing Overhead

All manufacturing costs other than direct labor and direct materials that are involved in the creation of a product.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet completed products.