A Key Element of Japan's Success in World Markets Is

question 24

Multiple Choice

A key element of Japan's success in world markets is

• A)the elimination of waste in all operations.
• B)automation of the billing function.
• C)inefficient labor forces in competing countries.
• D)the verification procedures incorporated into computer programs.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the product's cost calculation.

Break-Even Point

The level of production or sales volume at which total revenues equal total costs, resulting in zero profit or loss.

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and generate profit.

Contribution Margin Ratio

A financial metric that measures how much of a company's revenue is available to cover its variable costs and contribute to its fixed costs.