Lead Time Is

question 36

Multiple Choice

Lead time is:

• A) the amount of time it takes to place an order.
• B) the length of time it takes for goods to be received after an order is placed.
• C) the length of time it takes for an item, in inventory, to be sold.
• D) the length of time it takes to sell goods.

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Definitions:

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services in a manufacturing process.

Fluid Ounces

A unit of volume used primarily in the United States to measure liquids, equivalent to approximately 29.57 ml.

Production Process

The series of steps involved in transforming raw materials into finished goods or services.

Overhead Account

An account used to record the indirect costs of a business, which are not directly attributable to a specific product or service.