Which of the Following Best Explains the Concept of 'Outgoing

question 5

Multiple Choice

Which of the following best explains the concept of 'outgoing materials flow'? 

• A) The activities needed to optimize the goods flow from suppliers to the point of consumption. 
• B) The way in which finished products are distributed by the company to its customers. 
• C) Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
• D) The way in which materials processes are managed within a company.

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Definitions:

Unit Variable Expense

Costs that vary directly with the production of one unit of a product or service.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain and all fixed costs are covered.

Selling Price

The amount of money charged for a product or service, which can influence demand and revenue.

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, used to measure the profitability and efficiency of a product or service.