Auto Manufacturers Use Common Platforms When Making Different Types of Cars

question 18

True/False

Auto manufacturers use common platforms when making different types of cars. This allows them to achieve smaller production runs at a relatively low cost through economies of scope.

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Definitions:

Periodic Inventory System

A method of inventory valuation where inventory and cost of goods sold are determined at the end of an accounting period.

FIFO Method

"First In, First Out," an inventory valuation method where goods purchased or manufactured first are sold or used first, affecting the cost of goods sold and ending inventory valuation.

Cost of Goods Sold

The expenses directly linked to the manufacturing of goods a company sells.

Specific Invoice

An itemized bill showing quantities, descriptions, prices, and terms of products and services provided by a seller to a buyer.