After the Change,a Decreased Amount of Work-In-Process Inventory Is Projected

question 68

Multiple Choice

After the change,a decreased amount of work-in-process inventory is projected because:

• A)of reduced cycle times resulting from a more continuous production flow.
• B)of lower financing costs and the reduced need for storage and handling.
• C)larger batches can be processed faster and more efficiently.
• D)All of the above are correct.

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Definitions:

Gross Profit

is the difference between the revenue generated from sales and the cost of goods sold, indicating the financial health and profitability of a company's core activities.

Net Profit

The amount of money that remains from revenues after all the operating expenses, taxes, and costs have been subtracted.

Discounts

Reductions applied to the regular price of goods or services, often to stimulate sales or clear out inventory.

Value Analyses

The process of examining the function of goods or services to reduce costs without affecting quality, thereby increasing customer value.