If the Product Is a Physical Good, Operations Create Value

question 106

Multiple Choice

If the product is a physical good, operations create value and provide _____ utility by combining many dissimilar inputs to make something that is more valuable than the actual cost of the inputs used to create it.

• A) time
• B) form
• C) place
• D) service
• E) statistical

---

Definitions:

Statement of Cash Flows

A report detailing the total cash received by a company from its operational activities and external investments, alongside the total cash expenditures for business activities and investments over a specific time frame.

Net Sales Revenue

The amount of revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Nonsufficient Funds (NSF)

A situation where a bank account does not have enough money to cover a presented check or withdrawal request.