By Using EDI in the QR System,lead Times Are Reduced

question 92

Multiple Choice

By using EDI in the QR system,lead times are reduced because:

• A) there is no need to use the mail, overnight deliveries, or even fax
• B) inventory can be stored in the distribution centre with no fees for a delay
• C) retailers are prepared to receive merchandise and schedule associates accordingly
• D) vendors can predict what the customer wants, and vendors place all orders
• E) there is no need to order at all because the buyers monitor daily sales

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Definitions:

Variable Costing

A costing approach that solely incorporates variable manufacturing expenses such as direct materials, direct labor, and variable manufacturing overhead into the costs per unit of product.

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits over a specific period, indicating financial performance.

Net Operating Income

A company's income after operating expenses are subtracted but before deducting interest and taxes.

Break-even Sales

refers to the amount of revenue needed to cover all fixed and variable costs, at which point a business neither makes a profit nor incurs a loss.