Which of the Following Is an Accurate Statement Relevant to Operations

question 17

Multiple Choice

Which of the following is an accurate statement relevant to operations management principles?

• A)Labour is part of the transformation stage and is not considered an input.
• B)Operations management concerns the input stage of product development.
• C)The outputs of the operations system include both goods and services.
• D)Operations managers are not found in the service sector.
• E)Output equals capital times materials.

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Definitions:

Equivalent Unit

A measure used in cost accounting to represent a partial unit of production, allowing for the comparison and calculation of costs for partially completed goods.

Process Costing

An accounting method used for homogenous products, allocating costs across units of production, making it easier to compute the cost per unit.

Conversion Costs

Costs required to convert raw materials into finished products, including direct labor and manufacturing overhead.

Equivalent Units

A metric used in cost accounting to express the amount of work completed by manufacturers in terms of fully finished units.