Which of the Following Traditional Solutions Enables Manufacturers to Deal

question 24

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

---

Definitions:

Absorption Costing

A method of inventory costing in which all costs of production (both variable and fixed) are treated as product costs.

Variable Costing

Variable Costing is an accounting method that only allocates variable costs to inventory and cost of goods sold, excluding fixed manufacturing overhead from inventory valuation.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and net income.

Variable Costing

An accounting method that only considers variable costs (costs that fluctuate with production levels) in the calculation of product cost.