A Manufacturer Requires Fragile Raw Material That Takes Time to Be

question 127

Multiple Choice

A manufacturer requires fragile raw material that takes time to be delivered by the supplier.Which of the following should the production manager of this facility ensure?

• A)He or she has access to multiple suppliers.
• B)The supplier maintains confidentiality.
• C)The facility has a product layout.
• D)The facility uses more people to handle the raw material.

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Definitions:

Cash Dividend

A distribution of profits by a company to its shareholders, typically given as cash.

Direct Method

An approach in cost accounting where specific costs are directly traced to cost objects without any allocation, ensuring clear cost attribution.

Operating Activities

Activities related to the day-to-day functioning of a business, including selling, administering, and producing goods and services.

Long-term Investments

Investments held for an extended period, typically more than a year, such as bonds, stocks, or real estate, aiming for long-term benefits.