Which of the Following Correctly Describes the Accounting for Administrative

question 137

Multiple Choice

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

• A) Administrative expenses are product costs and are expensed as incurred.
• B) Administrative expenses are period costs and are expensed as incurred.
• C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
• D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

Appreciate the complexities and capabilities offered by modern supply chain management systems (SCM).

Identify the significance of upstream and downstream flows in supply chains.

Acknowledge the role of integration and collaboration tools in SCM, such as EDI, XML, and intranets.

Understand the implications of inventory velocity on customer satisfaction and supply chain performance.

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Definitions:

Responsiveness

The ability of a company, system, or process to quickly react to changes or customer needs.

Cost Savings

The practice of reducing expenses to improve profitability without compromising the quality or performance of goods and services.

Materials Requirement Plan (MRP)

A system for calculating the materials and components needed to manufacture a product, ensuring the right materials are available for production at the right time.

Independent Demand Items

Products for which demand is not influenced by the demand for other products, typically finished goods or spare parts.