In Assemble-To-Order Production

question 29

Multiple Choice

In assemble-to-order production:

• A) customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories.
• B) the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer.
• C) the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer.
• D) highly tailored products are created for the customer whose specifications require unique engineering design or significant customization.

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Definitions:

Hired Managers

Individuals employed by the owners of a firm to run the day-to-day operations and make business decisions.

Business Corporations

Legal entities that are formed to engage in business activities, owned by shareholders who share in the profits but are typically not liable for the company's debts.

Time-Value

A concept in economics that money available now is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.