Order Promising Is Best Defined As

question 62

Multiple Choice

Order promising is best defined as:

• A)time between recognition of the need for an order and the acknowledged,genuine receipt of goods.
• B)sales department commitments for delivery.As such,it answers the question "when can you ship?"
• C)lists of all of subassemblies,parts,and raw materials that go into a parent assembly.As such,it shows the quantities required.
• D)separating locations where end-items are built from locations of warehouses where subassemblies are stored.

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Definitions:

Activity Cost Pools

A method in activity-based costing that aggregates all indirect costs associated with a particular activity, allowing for more precise allocation of overheads to products or services.

Organization-Sustaining Activities

Activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.

First-Stage Allocations

The process of assigning overhead costs to different departments or cost pools as a first step in allocating costs to individual products or services.

ABC System

Refers to Activity-Based Costing System, a method of assigning costs to products or services based on the resources they consume.