The Amount of Time from When a Customer Places an Order

question 59

Multiple Choice

The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as ________.

• A) manufacturing lead time
• B) delivery time
• C) customer-response time
• D) a time driver

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Definitions:

Operating Cost

The expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Useful Life

The estimated duration a long-term asset is expected to be economically utilizable before it needs to be replaced or significantly overhauled.

Net Operating Income

The profit generated from a company's core business operations, excluding income and expenses from non-operational activities.

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific cost object, such as a product, department, or project.