Which of the Following Managers Wants to Keep the Least

question 35

Multiple Choice

Which of the following managers wants to keep the least amount of inventory on hand?

• A) production
• B) marketing
• C) operations
• D) finance

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs.

Direct Materials

These are raw materials that are directly traceable to the manufacturing of a product.

Direct Labour-Hours

The sum of working hours for employees actively participating in the manufacturing procedure.

Direct Materials

Raw materials that are directly traceable and integral to the finished product, and which can be directly allocated to the manufacturing process.