Five Dimensions Must Be Considered in Making Decisions on Process

question 66

Multiple Choice

Five dimensions must be considered in making decisions on process.Which one of the following correctly identifies all five major process decisions?

• A) capital intensity, resource flexibility, facility location, vertical integration, and process choice
• B) product or service life cycle, capital intensity, vertical integration, process choice, and customer involvement
• C) capital intensity, process choice, inventory placement, resource flexibility, and customer involvement
• D) capital intensity, resource flexibility, vertical integration, customer involvement, and process choice

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Definitions:

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Trust

A fiduciary relationship in which one party, known as a trustee, holds property for the benefit of another party, known as a beneficiary.

Contractual Arrangement

An agreement between two or more parties with legally binding terms and conditions.

AASB 11

The Australian Accounting Standards Board standard addressing the accounting for joint arrangements, requiring parties to a joint arrangement to recognize their rights and obligations.