_____ Involves Managing the Daily Production of Goods and Services

question 50

Multiple Choice

_____ involves managing the daily production of goods and services.

• A)Operations management
• B)Resource management
• C)Systems management
• D)Contingency management
• E)Bureaucratic management

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Excess Capacity

The amount by which the actual production of a company exceeds its planned production capacity.