Which of the Following Best Described Production-Oriented Firms

question 9

Multiple Choice

Which of the following best described production-oriented firms?

• A)They do not focus on their internal capabilities.
• B)They lack an understanding of the needs and wants of the marketplace.
• C)They focus on their customers and have quick cycle times.
• D)They determine what products their customers want and then produce them.

---

Definitions:

Spare Parts Store

A business or location that specializes in selling replacement parts and components for machinery, vehicles, or other equipment.

Underapplied Overhead

Refers to the situation when the actual factory overhead costs are more than the overhead costs applied to a product based on the predetermined rate.

Overapplied Overhead

A situation where the estimated manufacturing overhead cost is more than the actual overhead incurred during a period.

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception through the various phases of production to the final customer.