Which of the Following Statements About the Relationship Between Operations

question 155

Multiple Choice

Which of the following statements about the relationship between operations management and utility is TRUE?

• A) All operations management provides utility of one type or another.
• B) Only operations management in the manufacturing sector can truly be said to provide utility.
• C) Only operations management in the service sector provides utility because it is where product and consumer meet.
• D) Operations management creates the same kind of utility regardless of the sector of the economy involved.
• E) There is no demonstrable relationship between operations management and utility.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a given market.

Marginal Cost

The rise in expenses for the production of an additional unit of a product or service.

Downstream Division

A sector of a company or industry that focuses on the final stages of production and distribution to end-users, often involving refining, selling, and distribution processes.

Transfer Price

The price at which goods and services are sold between departments or subsidiaries within the same company.