The production of goods or services that can be bought from outside suppliers is classified as ___________?

Related Mcqs:

1. Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?

   A. outsourcing
   B. insourcing
   C. idle sourcing
   D. sunk sourcing

2. The costs of goods acquired from suppliers are classified as ___________?

   A. stock-out costs
   B. ordering costs
   C. carrying costs
   D. purchasing costs

3. The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as ______________?

   A. product life cycle method
   B. life cycle budgeting method
   C. life cycle costing method
   D. time and material method

4. The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?

   A. carrying costs
   B. purchasing costs
   C. stock-out costs
   D. ordering costs

5. The costs that are incurred to prevent low quality goods production are classified as ___________?

   A. costs of quality
   B. costs of learning
   C. costs of reengineering
   D. costs of spoilage inventory

6. The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?

   A. proration approach
   B. appreciation approach
   C. depreciation approach
   D. adjusted approach

7. The cost of manufactured goods is added into beginning inventory, and the amount equal to cost of sold goods are added into ___________?

   A. minus beginning inventory
   B. minus ending inventory
   C. plus ending inventory
   D. plus beginning inventory

8. The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?

   A. budget production
   B. planned production
   C. setup production
   D. stand by production

9. The stage in production process, where the manufactured goods are checked; whether the units are acceptable or not is classified as __________?

   A. rework point
   B. inspection point
   C. spoilage point
   D. scrap point

10. The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as ____________?

    A. reduced work
    B. spoilage
    C. rework
    D. scrap