One of the Types of Supply Uncertainty Is ______

question 100

Multiple Choice

One of the types of supply uncertainty is ______.

• A)the inability of an individual supplier to fulfill its obligations
• B)a surplus of inbound raw materials and components
• C)a shortage of outbound raw materials and components
• D)a surplus of outbound raw materials and components

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Definitions:

Manufacturing Margin

The difference between the cost of manufacturing goods and the sale price, indicating the profitability of production activities.

Unsold Units

Inventory items that have not been sold by the end of a selling period, affecting inventory carrying costs and cash flow.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to fixed costs and profits.