What Are Operational Business Processes

question 52

Multiple Choice

What are operational business processes?

• A) Dynamic, nonroutine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions.
• B) Semidynamic, semiroutine, monthly business processes such as resource allocation, sales strategy, or manufacturing process improvements.
• C) Static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes.
• D) None of the choices are correct.

---

Definitions:

Inventory Costs

Expenses associated with acquiring, storing, and managing inventory, including purchase prices, storage fees, and costs related to inventory spoilage or obsolescence.

FIFO Inventory

First-In, First-Out Inventory is an asset management and valuation method that assumes goods produced or acquired first are sold, used, or disposed of first.

LIFO Reserve

The difference between the cost of inventory calculated under the Last In, First Out (LIFO) method and its cost under the First In, First Out (FIFO) method.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.