Taylor Uses Old T-Shirts to Make Reusable Shopping or Grocery

question 34

Multiple Choice

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She knows there is a huge craft fair coming up at her local high school and she has been saving all the t-shirts she has gotten that have the high school's name on it so she will have lots of bags targeted to the high school audience.
Which of the following is true about Taylor's supply chain?

• A)Taylor is practicing JIT inventory.
• B)Taylor has vertical integration.
• C)Taylor doesn't need accurate forecasts.
• D)Taylor is experiencing the bullwhip effect.

Interpret the significance of operating leverage and its effect on business profitability.

Analyze the effect of varying levels of sales on profit using cost-volume-profit (CVP) analysis.

Use scatter diagrams as a tool for analyzing past cost behaviors and estimating future costs.

Understand and apply the high-low method for estimating fixed and variable costs.

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Definitions:

Job M381

A specific job or project identifier, often used in job costing scenarios to track costs and monitor progress on a particular task or project.

Departmental Predetermined Overhead Rates

The overhead rates set for specific departments within a company, based on estimated costs and activity levels.

Manufacturing Cost

The total expense incurred in the process of producing a product, including raw materials, labor, and overhead.

Selling Price

The price at which a product or service is offered to consumers.