Which of the Following Terms Is Not a Potential Disadvantage

question 18

Multiple Choice

Which of the following terms is not a potential disadvantage of early supplier involvement? 

• A) Higher product costs. 
• B) Delayed market introduction. 
• C) Increased customer complaints. 
• D) Discussions on intellectual property.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including costs related to factory operation but not directly traceable to the product, such as maintenance and utilities.

Work in Process

Inventory that is in the production process but is not yet completed.

Overapplied

A situation where the allocated amount of indirect costs exceeds the actual amount incurred.

Underapplied

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead incurred, indicating that the costs have not been fully allocated.