XYZ Has Three Supply Chain Locations with Respective Production Capacities

question 21

Multiple Choice

XYZ has three supply chain locations with respective production capacities of an electronic component (Denver,Milwaukee,and Columbia) and three demand locations with their respective demand requirements for that electronic component.The demand requirements,production capacities,and the per-unit transportation costs are tabled in the transportation matrix shown here.Determine the initial shipping cost using the matrix least cost method.

• A)$30,000
• B)$40,000
• C)$24,000
• D)$31,000

Calculate the effect of inventory level changes on operating income under both costing methods.

Differentiate between manufacturing and non-manufacturing costs in costing methods.

Analyze how inventory levels affect financial statements under variable and absorption costing.

Recognize the importance of capacity utilization in determining operating income and inventory valuation.

---

Definitions:

Throwing Baseball

A fundamental skill in the sport of baseball that involves propelling the ball towards another player or target with the hand and arm.

Dementia

A chronic or persistent disorder of the mental processes caused by brain disease or injury and marked by memory disorders, personality changes, and impaired reasoning.

Integrity Versus Despair

A stage in Erik Erikson's theory of psychosocial development, occurring in late adulthood, where individuals reflect on their life and can feel either a sense of fulfillment or dissatisfaction.

Senior Moment

A colloquial term for a temporary lapse in memory or confusion that is often humorously attributed to aging.