________-Demand Items Are Items for Which Demand Is Influenced by Market

question 14

Short Answer

________-demand items are items for which demand is influenced by market conditions and is not related to the inventory decisions for any other item held in stock.

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Definitions:

Variable Cost

Expenses that fluctuate directly and proportionately with changes in production volume or activity level, such as raw materials and direct labor.

Planning Budget

A financial plan that forecasts revenue, expenditures, and resources needed for a particular period.

Static Budget

A financial plan that does not change or adjust over the period for which it is set, regardless of variations in activity levels or performance.

Overhead Cost

These are expenses related to the ongoing operation of a business that isn't directly tied to a specific product or service.