Which Use of Common Components in a Variety of Products

question 53

Multiple Choice

Which use of common components in a variety of products has been a very effective supply chain strategy to exploit aggregation and reduce component inventories?

• A)Information centralization
• B)Specialization
• C)Product substitution
• D)Component commonality

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Definitions:

Decrease

Refers to the reduction in size, quantity, or importance of something, often quantifiable in financial terms such as profits, values, or sizes.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Indirect Method

A method for preparing the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate operating cash flows.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.