Jones Company Has a Make-To-Order Orientation

question 30

Multiple Choice

Jones Company has a make-to-order orientation.It most likely does NOT use:

• A)Continuous process structure.
• B)Cellular manufacturing process structure.
• C)Job shop process structure.

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Definitions:

Profit-Maximizing

A process that enables a business to identify the price and production level that results in the greatest profit.

Marginal Revenue

The revenue increase from selling one more unit of a product or service.

Marginal Cost

The increase or decrease in the total production cost when the production level is increased by one additional unit.

MR = MC Rule

An economic principle that states a firm will maximize its profit when its marginal revenue equals its marginal cost.