Processes Are Related Activities or Events That Create Value

question 81

True/False

Processes are related activities or events that create value.

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Definitions:

Direct Material

Raw materials that are directly incorporated into a finished product and can be easily traced.

Indirect Material

Materials used in the production process that can't be directly traced to a finished product, such as lubricants and cleaning supplies.

Storeroom

A designated space for storing inventory, tools, and materials, often found in a manufacturing or production facility.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.