Which Activities Belong in the Operations Management Department

question 172

Multiple Choice

Which activities belong in the operations management department?

• A)Records, measures, and reports monetary transactions.
• B)Manages the process of converting or transforming resources into goods or services.
• C)Supports the sales by planning, pricing, and promoting goods or services is marketing.
• D)Maintains policies, plans, and procedures for the effective management of employees.

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Definitions:

Step-Down Method

An accounting method used to allocate service department costs to producing departments in a sequential manner, reflecting the services rendered to each.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects such as products, departments, or projects.

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages the cost of goods available for sale.

Cost Per Equivalent Unit

An accounting measure used in process costing that represents the cost incurred to produce an equivalent unit of production.