Which Measure of Basic Service Will Most Likely Show Poorest

question 9

Multiple Choice

Which measure of basic service will most likely show poorest performance for a firm?

• A)Item fill rate
• B)Order fill rate
• C)Line fill rate
• D)Perfect orders

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Definitions:

Absorption Costing

An approach to product costing that compounds all expenses involved in manufacturing, such as direct materials, labor costs, and all types of overheads, into the product’s final cost.

Markup

The discrepancy between the selling price and the production cost of a product or service, shown as a percentage of the production cost.

Return On Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiencies of several investments.

Absorption Costing

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