Most Manufacturers Do Not Want to Store Large Amounts of Nuts

question 94

Multiple Choice

Most manufacturers do not want to store large amounts of nuts, bolts, and screws, but they need to be able to get them out quickly when necessary for production. Regal Company is a wholesaler that will deliver most parts right to the factory within two hours of the order. Regal, like many other wholesalers, focuses on

• A) providing unique parts.
• B) service.
• C) a high level of product knowledge.
• D) productivity.
• E) effectiveness.

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Definitions:

Ending Direct Materials

Ending Direct Materials refers to the value of raw materials that are still available for use in production at the end of an accounting period.

Required Production

Required production is the quantity of goods a company needs to produce in a given period to meet customer demand and maintain inventory levels.

Direct Labor

Labor costs directly associated with the manufacture of products or provision of services, such as wages for assembly line workers.

Manufacturing Overhead

Manufacturing overhead includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor employees.