Reducing Wait Time Is Directly Linked to Reducing Inventory

question 53

True/False

Reducing wait time is directly linked to reducing inventory.

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Definitions:

Finished Goods Inventory

Merchandise that is completely manufactured, processed, and ready for sale.

Direct Materials

Raw materials that are directly traced to the production of goods or services; these are the primary inputs in the manufacturing process.

Direct Labor

The earnings and perks of workers who are actively engaged in the making of products or provision of services.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to a specific product, such as utilities and management salaries.