Place the Five Business Functions in the Order They Appear

question 52

Multiple Choice

Place the five business functions in the order they appear along the value chain: A = Customer service
B = Design
C = Distribution
D = Production
E = Research and Development

• A) A, E, B, D, C
• B) A, C, D, B, E
• C) E, B, D, C, A
• D) E, B, A, D, C
• E) B, E, D, C, A

---

Definitions:

Standard Cost System

A system of accounting that uses cost standards for costing materials, labor, and overhead.

Fixed Manufacturing Overhead Rate

This refers to the rate at which all fixed manufacturing costs are allocated across units produced, typically calculated at the beginning of a fiscal period.

Variances

The difference between planned or expected financial outcomes and the actual results.

Direct Materials

Raw materials that directly become a part of the finished product and can be easily traced to it.