S Cooperation and Relationships Between Suppliers and Manufacturers Build Up

question 12

Multiple Choice

s cooperation and relationships between suppliers and manufacturers build up in a JIT system, so do the opportunities to ______________________ and focus on ________________________.

• A) lower costs of materials and supplies / reducing waste and shrinkage
• B) conduct an extensive competitive analysis / reducing selling prices
• C) conduct an extensive value analysis / reducing the cost of parts purchased
• D) analyze competition / developing competitive strengths
• E) conduct cost analysis / reducing the costs of doing business

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.

Weighted-Average Method

An inventory costing method in which the cost of goods available for sale is divided by the total units available for sale, resulting in a weighted average cost per unit.

Process Costing System

An accounting system used to accumulate costs in industries where production is continuous and units are indistinguishable from one another.

Conversion Costs

Costs required to convert raw material into finished goods, primarily comprising labor and overhead expenses.