Which of the Following Describes the Situation When Raw Materials

question 28

Multiple Choice

Which of the following describes the situation when raw materials arrive at the assembly line in guaranteed working order,and finished products are generally shipped to the customer immediately after completion.

• A)just-in-time manufacturing
• B)electronic data interchange
• C)value-added channelization
• D)contract logistics

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Definitions:

Factory Overhead

includes all the indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of indirect labor.

Direct Labor

The labor costs directly associated with the manufacturing of a product, including wages of workers physically involved in production.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.