An Organization That Creates Many Products with Similar Characteristics,using Assembly

question 91

Multiple Choice

An organization that creates many products with similar characteristics,using assembly lines would most likely be categorized as a(n) :

• A)continuous manufacturing organization.
• B)intermittent organization.
• C)project organization.
• D)contract manufacturing organization.
• E)fixed-position organization.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Step-Variable Cost

Costs that are fixed over a small range of activity but can change with significant changes in the volume of activity.

Sunk Cost

Expenses already incurred and which cannot be recovered, and should not be considered when making future business decisions.

Direct Manufacturing Cost

The sum of all costs directly tied to the production process, including direct labor and raw materials.