A Management Concept Based on an Understanding of the Changing

question 81

Multiple Choice

A management concept based on an understanding of the changing wants and needs of customers,and which leads to flexible product designs and production processes,is called:

• A)Continuous improvement.
• B)Customer orientation.
• C)Just-in-time.
• D)Theory of constraints.
• E)Total quality management.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Forecasting Risk

The risk associated with the potential for actual results or outcomes to differ significantly from forecasted or expected results.

Operating Leverage

The degree to which a company or project can increase operating income by increasing revenue, emphasizing the fixed versus variable costs structure.

Break-Even Point

The sales level at which a company neither makes a profit nor incurs a loss.