What Are Structural and Executional Factors That Determine the Long-Term

question 38

Multiple Choice

What are structural and executional factors that determine the long-term cost structure of an organization?

• A)organizational activities
• B)organizational cost drivers
• C)operational activities
• D)operational cost drivers

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Definitions:

Inventory Cost

The total cost associated with purchasing and producing the inventory a business holds, including the costs of materials, labor, and overhead.

Perpetual Inventory System

An accounting method where inventory quantities and cost of goods sold are continuously updated with each sale or purchase transaction.

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.