The Order Fulfillment Process May Be Outsourced to a Third

question 17

Multiple Choice

The order fulfillment process may be outsourced to a third party so that the outsourcing company can ______.

• A)focus on its core business
• B)pass the increase in prices to end consumers
• C)circumvent government regulation
• D)achieve ISO certification

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Definitions:

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced, representing the cost to produce a single unit of product.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculation, excluding fixed overhead.

Net Operating Income

Net operating income is the profit generated from a company's normal business operations, excluding expenses and revenues from non-operating activities.

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the price of a product.