When Brian Took Over the Position of Purchasing Manager for Gray

question 127

Multiple Choice

When Brian took over the position of purchasing manager for Gray Lumber Company,a regional building materials supply company,he found a JIT system in place,but in spite of that the company had frequent problems related to inventory.Shipments were often late or incomplete,there was little communication from the company's vendors,and only superficial attempts were being made to address the problems.For companies like Gray Lumber,the critical factor in having a successful JIT system is:

• A) distributional excellence.
• B) shared data.
• C) EDI systems.
• D) CPFR systems.
• E) cooperation.

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Definitions:

Internal Decision Making

The process of making choices or decisions within a company based on internal data and analysis.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Multiproduct CVP Analysis

A method used in managerial accounting to analyze the profitability of products by examining the relationship between cost, volume, and price across multiple products.

Constant Sales Mix

An assumption in cost-volume-profit analysis that the sales mix will remain unchanged as sales levels vary.