The Stages in the Life of a Transaction Exposure Can

question 18

Multiple Choice

The stages in the life of a transaction exposure can be broken into three distinct time periods. The first time period is the time between quoting a price and reaching an actual sale agreement or contract. The next time period is the time lag between taking an order and actually filling or delivering it. Finally, the time it takes to get paid after delivering the product. In order, these stages of transaction exposure may be identified as:

• A) backlog, quotation, and billing exposure.
• B) billing, backlog, and quotation exposure.
• C) quotation, backlog, and billing exposure.
• D) quotation, billing, and backlog exposure.

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Definitions:

Throughput Time

The total time taken to manufacture a product, from the start of production to its completion.

Fill Orders

Completing customer requests for products by preparing, packaging, and shipping the requested items, ensuring orders are fulfilled accurately and promptly.

Manufacturing Cycle Efficiency

A measure of the effectiveness of a manufacturing process, calculated by dividing the value-added production time by the total cycle time.

Fill Orders

The process of completing customer requests for goods or services in accordance with purchase agreements or specifications.