The Effect of the Lack of Synchronization Among Supply-Chain Members

question 32

Multiple Choice

The effect of the lack of synchronization among supply-chain members is referred to as which of the following?

• A)Forward buying
• B)Continuous replenishment
• C)Bullwhip effect
• D)Metcalf's Law
• E)Being out of step

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Definitions:

Predetermined Manufacturing Overhead

An estimated overhead rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products.

Machine-hours

A measure of production time, used in cost accounting, representing the hours that a machine operates.

Predetermined Overhead Rate

This refers to the rate used to allocate manufacturing overhead costs to individual products or job orders, calculated before the accounting period begins based on estimated costs and activity levels.

Machine-hour

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and setting production schedules.