Identify a True Statement About Opportunity Cost

question 40

Multiple Choice

Identify a true statement about opportunity cost.

• A) It excludes the value of customers never obtained.
• B) It includes cost reductions not achieved in the company's supply chain.
• C) It excludes the costs of sales not made.
• D) It includes the benefits that a company obtains from an electronic commerce initiative.

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Definitions:

Repetitive Facilities

Facilities designed for high-volume, repetitive operational processes, focusing on efficiency and consistency in production.

JIT

Just-In-Time, a management philosophy aimed at eliminating waste by receiving goods only as they are needed in the production process.

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing (JIT), signaling the need to move materials within a production facility or to the facility from the external supplier.

MRP

Material Requirements Planning, a software-based production planning and inventory control system used to manage manufacturing processes.