Selya and Reece Are Business Partners in a Small Manufacturing

question 16

Multiple Choice

Selya and Reece are business partners in a small manufacturing firm that makes customized and ergonomically sound office furniture. Selya feels it is important to work directly with customers to design high-quality desks and chairs that precisely meet their needs. Reece is more concerned with finding ways to keep the company's costs as low as possible. In this partnership what is Selya most concerned with?

• A) operations management
• B) separability
• C) effectiveness
• D) economics

---

Definitions:

Factory Building

A structure purposed for industrial processes including manufacturing, assembling, processing, or handling products.

Rent Expense

The cost incurred for leasing or renting property or equipment for business use.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, rent, and maintenance, that cannot be directly traced to a product.

Materials Not Traceable

Materials used in a production process that cannot be directly linked to a specific product, often considered as part of overhead.