Longer Manufacturing Cycle Times Can Result in ________

question 105

Multiple Choice

Longer manufacturing cycle times can result in ________.

• A) lower revenues and higher inventory carrying costs
• B) higher opportunity costs and low profit margins
• C) lower opportunity costs and high profit margins
• D) higher revenues and lower inventory carrying costs

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Definitions:

Process Costing Systems

Process costing systems are accounting methods used to allocate production costs to units of output, particularly effective in industries that produce identical or similar products in continuous processes.

FIFO Method

An inventory valuation method that assumes the first items placed into inventory are the first sold, standing for "First-In, First-Out."

Work in Process Inventory

Goods and materials that are partially completed in the manufacturing process but not yet ready for sale.

FIFO Method

A inventory valuation method that assumes the first items purchased or produced are the first ones sold, standing for "First In, First Out."