Information About Potential Cost Drivers May Be Requested from Employees

question 38

True/False

Information about potential cost drivers may be requested from employees directly involved in activities.

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Definitions:

Safety Stock Computation

The calculation of a buffer quantity of inventory kept on hand to prevent stockouts, based on variability in demand and supply.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how much individual values differ from the average.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components and finished products.

Inventory Classification

The process of categorizing inventory items based on their importance, such as ABC analysis which ranks items by their impact on total inventory cost.