Which of the Following Are Performance Measures Used by Firms

question 82

Multiple Choice

Which of the following are performance measures used by firms to assess their own performance in relation to suppliers?
i. Percentage of orders processed by electronic means
ii. Number of expedited orders
iii. Response time to customer queries
iv. Reduction in the number of suppliers

• A) i, ii and iii
• B) ii, iii and iv
• C) i, ii and iv
• D) All of the given answers

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Definitions:

Overhead Allocation

The process of distributing overhead costs, such as rent and utilities, to different departments or production processes within a company.

Direct Labor-Hours

This term is a measure of labor time directly involved in the manufacturing process, used for allocating labor costs to units produced.

Total Overhead Applied

The total amount of overhead costs allocated to products or cost objects based on the predetermined overhead rate.

Total Activity

The measure of the total amount of work or production completed in a specific period.