Which of the Following Types of Operations Are Most Dependent

question 3

Multiple Choice

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

• A) project manufacturing
• B) assemble-to-order operations
• C) make-to-order operations
• D) buy-to-sell operations
• E) make-to-stock operations

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Definitions:

Conversion Cost

The cost incurred to convert raw materials into finished goods, including labor and manufacturing overhead costs.

Process Costing

A costing method used for homogeneous products, where costs are accumulated over a period and assigned to units produced, typically in manufacturing.

Weighted-Average Method

It's a strategy to calculate the ending inventory and cost of goods sold by applying the average price of all items on offer during the timeframe.

Conversion Cost

The combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.