Which of the Following Is Not a Reason Why a Company

question 99

Multiple Choice

Which of the following is not a reason why a company would adopt JIT purchasing practices?

• A) high shrinkage costs
• B) low ordering costs
• C) low carrying costs of inventory
• D) reliable supply chains

Explain the distinctions between different types of investments (foreign direct and portfolio) and their impacts on the economy.

Identify factors contributing to variations in economic growth rates among countries.

Recognize the significance of technological knowledge and human capital in enhancing productivity.

Analyze the role of policy orientations (inward vs. outward) and their effects on economic growth.

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Definitions:

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials used in the manufacturing process.

Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of resource usage, calculated as the difference between actual usage and the standard or expected usage.

Materials Price Variance

The variance between the standard cost and the actual expense of materials, calculated by multiplying the amount bought.

Direct Materials

Raw materials that are directly traceable to the production of a specific product, representing a significant portion of the costs of goods sold.