Which of the Following Statements Is True About Manufacturing Companies

question 51

Multiple Choice

Which of the following statements is true about manufacturing companies over the past 20 years?

• A) The grouping of machines into "manufacturing cells" has increased.
• B) Carrying large amounts of inventory is often less costly than carrying small amounts of inventory.
• C) They have moved from a "pull" approach to more of a "push" approach.
• D) The basic production process has changed very little over the past 20 years.

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Definitions:

Transfer Pricing

The pricing of goods, services, and intangibles between affiliated entities that may cross international borders, often used to allocate income among different tax jurisdictions.

Transfer Price

The cost at which products and services are exchanged between departments within the same organization.

Tax Rate

The percentage at which an individual or corporation's income is taxed by the government.

Profitable Subassembly

A component or assembly within a product that generates profit by being produced and sold as part of the final product.