During Which Element of Manufacturing Cycle Time Is Value Added

question 2

Multiple Choice

During which element of manufacturing cycle time is value added to products?

• A) Storage and waiting time.
• B) Processing time.
• C) Movement time.
• D) Inspection time.

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Definitions:

Purchases Returns and Allowances

Transactions involving the return of goods to suppliers or receiving discounts due to issues like damaged goods, leading to a reduction in purchase costs.

Merchandise Inventory

The goods a company holds in stock with the intention of selling them as part of its business operations.

Freight-In

Freight-in refers to the shipping cost associated with getting goods delivered from suppliers to the buyer, often included in the inventory cost of purchased goods.

Sales Returns

Goods returned by buyers after sale due to defects, dissatisfaction, or other reasons, which are deducted from total sales revenue.