Which Activities Do Production and Materials Management Components Perform

question 305

Multiple Choice

Which activities do production and materials management components perform?

• A) Track employee information including payroll,benefits,compensation,performance assessment,and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
• B) Handle the various aspects of production planning and execution such as demand forecasting,production scheduling,job cost accounting,and quality control
• C) Manage accounting data and financial processes within the enterprise with functions such as general ledger,accounts payable,accounts receivable,budgeting,and asset management
• D) None of these choices

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Definitions:

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Operating Income

Earnings from a company’s core business operations, excluding deductions for interest and taxes.

Variable Costs

Costs that fluctuate in direct proportion to changes in levels of production or sales volumes.