Chris Has Started His Own Computer Manufacturing Company

question 114

Multiple Choice

Chris has started his own computer manufacturing company. Realizing each of his customers will have different specifications,he creates an inventory of the basic computer platform then adds storage,memory,and other components as specified by each customer. What type of operation does Chris have at his company?

• A)assemble-to-stock  
• B)assemble-to-order  
• C)make-to-order  
• D)make-to-stock

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Definitions:

Days' Sales in Inventory

An economic indicator that calculates the mean duration in days a business requires to sell off its stock.

Specific Identification Method

An inventory valuation method that tracks the cost of each individual item in inventory.

Consignor

The person or entity that owns goods on consignment and sends them to the consignee for sale or display.

Days' Sales in Inventory

A financial metric that measures the average number of days it takes for a company to sell its entire inventory during a given period.