Having Large Quantities of Excess Inventory Increases an Organization's ___________

question 43

Short Answer

Having large quantities of excess inventory increases an organization's ___________.

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Definitions:

Work in Process

A category of inventory representing items currently being manufactured but not yet completed.

Direct Labor

The wages and other costs for labor directly involved in the production of goods or services, excluding indirect labor costs.

Standard Costs

Predetermined costs for materials, labor, and overhead, against which actual costs are compared.

Cost of Goods Sold

Expenses directly associated with producing goods a company sells, entailing labor and material costs.