Jeremy Is in Charge of Production at Tech Farm Equipment

question 17

Multiple Choice

Jeremy is in charge of production at Tech Farm Equipment.His job responsibilities include eliminating defects in the equipment parts the factory produces.However,he has advised his crew to alert him only when defects exceed 200 per million,which he considers a serious deviation from standards.In this case,Jeremy is using:

• A) a management audit.
• B) the principle of deviation.
• C) clan control.
• D) the principle of exception.
• E) behavioral standards.

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Definitions:

Product Life Cycle

The stages a product goes through from introduction to growth, maturity, and decline in the market.

Lack of Competition

Occurs in markets where there are few competitors, potentially leading to higher prices and less innovation.

Break-Even Point

The moment when total costs equal total revenues, indicating that a business is not making a profit but also not incurring a loss.

Producing Cost

Producing cost entails the expenses incurred in the manufacture of goods, including materials, labor, and overhead costs.