Customer Order Fulfillment Refers to

question 17

Multiple Choice

Customer order fulfillment refers to

• A)the point in time when the customer has access to choices and makes a decision regarding a purchase.
• B)the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
• C)the process where product is prepared and sent to the customer.
• D)the process where the customer receives the product and takes ownership.

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Definitions:

Absorption Costing

A method of cost accounting that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

A costing method where only variable manufacturing costs are included in the cost of goods sold, with fixed manufacturing overhead treated as a period expense.

Absorption Costing

An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profitability.