What Kinds of Questions Does an Operations Manager Who Is

question 19

Multiple Choice

What kinds of questions does an operations manager who is responsible for strategic-level planning address?

• A)Which employees should work the day shift tomorrow?
• B)How should this process be organized?
• C)How many manufacturing plants should the company operate?
• D)Should we make this part or buy it?

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Definitions:

Direct Labor Costs

Expenses related to employees who are directly involved in the production of goods or services, such as wages for assembly line workers.

Direct Materials

Basic substances that can be directly linked to the production process of a product.

Direct Labor Costs

The expenses associated with the wages of employees who are directly involved in the production or manufacturing of goods or services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders based on a projected activity level.