Activities That Are Required to Provide Productive Capacity and to Keep

question 32

Multiple Choice

Activities that are required to provide productive capacity and to keep the business in operation are

• A)Batch-level activities
• B)Product-level activities
• C)Customer-level activities
• D)Organization-level activities

---

Definitions:

Days' Sales

A metric that calculates the average time it takes for a company to convert its inventory into sales.

Average Daily Cost

This measures the average amount spent per day over a specified period, often used in budgeting and financial planning.

Periodic Inventory System

A method of inventory valuation where updates to inventory records are made at specified periods, rather than continuously.

FIFO

"First-In, First-Out," an inventory valuation method where the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.