Managers Investigate

question 7

Multiple Choice

Managers investigate

• A) All variances
• B) All unfavorable variances
• C) Variances they consider important
• D) Variances that are reported in the financial statements

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Definitions:

Dependent Demand

Describes a situation where the demand for one product is directly tied to the demand for another, such as components required to assemble a final product.

Independent Demand

A demand for a finished product that is not dependent on the demand for other products in a company's inventory.

Demand Chain

The network of resources and processes involved in driving customer demand for products and services, as opposed to the traditional supply chain.

Demand Management

Strategies and practices aimed at forecasting, planning, and influencing customer demand to optimize supply chain and resources.