An Example of an OM Decision Would Be

question 53

Multiple Choice

An example of an OM decision would be:

• A) Which distribution channels to utilize
• B) Where to locate a factory
• C) How to schedule workers
• D) Market segmentation strategy
• E) b and c

Recognize the impact of fixed and variable costs in cost accounting.

Assess how changes in production and inventory levels affect gross profit and ending inventory valuation.

Understand the strategic implications of using different costing methods for internal decision making and external reporting.

Analyze the repercussions of adopting absorption or variable costing on a firm’s income statement and balance sheet.

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Definitions:

Labor-Intensive

Describing a process or industry that requires a large amount of labor to produce its goods or services.

Marginal Product

The additional output generated by employing one more unit of a specific input, while holding other inputs constant.

Labor

The effort of humans, including both physical and mental labor, utilized in creating goods and providing services.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input while holding other inputs constant.