Saffer Corporation Keeps Careful Track of the Time Required to Fill

question 56

Multiple Choice

Saffer Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:
-The delivery cycle time was:

• A)7.5 hours
• B)29.1 hours
• C)30.9 hours
• D)3.1 hours

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Definitions:

Cost Of Goods Sold

Direct expenditures involved in producing the products a company sells, inclusive of materials and labor.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Profit Center

A branch or division of a company that is directly responsible for generating profit, measured by its success in contributing to the company's bottom line.

Cost Center

A department or function within an organization to which costs can be allocated, but which does not directly generate revenue.