Lead Time Is the Interval That Elapses Between Recognition That

question 16

Multiple Choice

Lead time is the interval that elapses between recognition that an order should be placed and _____.

• A)the delivery of that order
• B)availability for use by production
• C)receipt of raw materials
• D)completion of cross-docking

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Definitions:

Gross Profit Margin

A financial metric that measures the percentage of revenue exceeding the cost of goods sold.

Cost Of Goods Sold

The total expense incurred by a business to manufacture or acquire products that were sold during a specific period.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling products.

Profitability

A financial metric used to assess the ability of a business to generate earnings relative to its revenue, assets, equity, or other financial metrics.