Efficient Consumer Response Systems Refer to

question 196

Multiple Choice

Efficient consumer response systems refer to

• A)an order replenishment system that maintains a ten percent inventory rate at all times in order to guarantee there will never be stockouts.
• B)an online virtual inventory storage program that allows firms to enter in minute-by-minute information in order to avoid stockouts due to unforeseen environmental forces.
• C)a computer program that allows even the smallest manufacturer to manage his or her own inventory system.
• D)inventory management systems that are designed to reduce the retailer's lead time for receiving merchandise which then lowers a retailer's inventory investment, improves customer service levels, and reduces logistics expense.
• E)exclusive contractual agreements between delivery services such as Federal Express, or UPS to deliver rush orders at a special low rate, regardless of the day, time, or other package traffic.

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Definitions:

Overapplied

A situation where the allocated amount of indirect costs exceeds the actual amount incurred.

Underapplied

A situation where the applied manufacturing overhead is less than the actual manufacturing overhead incurred, indicating that the costs have not been fully allocated.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or job orders based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or provision of services.