Order Cycle Time Refers to

question 197

Multiple Choice

Order cycle time refers to

• A)the time between when an order is placed and when payment is received.
• B)the time between the sale of the first production batch to the sale of the next production batch.
• C)the cycle between one full warehouse shipment to the next full warehouse shipment.
• D)the lag from ordering an item until it is received and ready for use or sale.
• E)the average time between reorders by a given wholesaler or retailer in the channel.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit of material.

Standard Material

The predetermined quantity and cost of materials expected to be used in producing a unit of product, used as a benchmark for cost control.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, which can affect costs.