The Ease with Which a Supplier Can Take Delivery of Product

question 31

Multiple Choice

The ease with which a supplier can take delivery of product a customer is dissatisfied with is

• A)order visibility.
• B)time to market.
• C)product returnability.
• D)response time.

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Definitions:

Machine Hours

A measure of the operating time of machines or equipment, typically used in allocating manufacturing costs.

Fixed Overhead Rate

A predetermined rate used to allocate fixed overhead costs to units of output, based on a standard level of activity.

Gross Profit

Sales minus the cost of goods sold.

Volume Variance

A measure used in budgeting and accounting to illustrate the difference between expected sales volume and actual sales volume.