Which of the Following Traditional Solutions Enables Manufacturers to Deal

question 71

Multiple Choice

Which of the following traditional solutions enables manufacturers to deal with uncertainties in the supply chain?

• A)safety stock
• B)continuous replenishment
• C)just-in-time strategies
• D)demand planning
• E)perfect information

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Definitions:

Support Department Cost Allocation

The distribution of overhead costs from auxiliary departments (like maintenance or HR) to producing departments based on relevant allocation bases.

Support Department Cost Allocations

The process of distributing indirect costs from service departments to the departments that directly contribute to revenue generation.

Direct Method

A technique in cost accounting where only direct costs are assigned to cost objects, ignoring indirect costs.

Step-Down Method

A cost allocation method used in accounting to assign overhead costs to products or service departments in a sequential manner.