The Costs Incurred in Sending Material Out of a Facility

question 70

Multiple Choice

The costs incurred in sending material out of a facility are

• A)sourcing transportation costs.
• B)outbound transportation costs.
• C)crossbound transportation costs.
• D)inbound transportation costs.

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Definitions:

APS

Average Propensity to Save, which measures the proportion of income that is saved rather than spent.

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.