The Use of Supplemental Resources Such as Overtime,contract Workers,and Additional

question 72

Multiple Choice

The use of supplemental resources such as overtime,contract workers,and additional shifts leads to a ______.

• A)drop in product quality
• B)substantial increase in operating costs
• C)need for new product designs
• D)need for new corporate strategies

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Definitions:

Direct Materials Purchases

The total cost and quantity of raw materials bought by a company for use in its production process.

Raw Materials Inventory

Stocks of the basic materials that are required to manufacture products or provide services.

Required Production

The total quantity of goods that must be manufactured or produced to meet customer demand.

Raw Material Purchasing

The process of acquiring the basic materials or inputs required for the manufacturing or production of goods.