The Role of the Purchasing Function in a Manufacturing Organization

question 25

Multiple Choice

The role of the purchasing function in a manufacturing organization has become increasingly important. The _____________ production control system focuses on reducing both raw materials and work-in-process inventories.

• A) JUST-ON-TARGET
• B) MBO
• C) just-in-time
• D) strategic
• E) just-in-line

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Definitions:

Unearned Subscription Revenue

Revenue received in advance for services or goods to be provided in the future, recognized as a liability until delivered.

Subscription Revenue

Income generated from customers who pay a recurring price at regular intervals for access to a product or service.

Quarterly

Pertaining to a period of three months or a quarter of a year, often used in finance to denote regular intervals for reporting or payment.

Accumulated Depreciation

The total amount of depreciation expense that has been reported in accounting periods up to the current date for an asset, reducing its book value.