Joe Jones Was Asked to Undertake a Project to Determine

question 2

Multiple Choice

Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years.These types of decisions are considered to be:

• A)Infrastructural aspects of operations management.
• B)Positional aspects of operations management.
• C)Assessment aspects of operations management.
• D)Structural aspects of operations management. Resources and capacity are among the structural decisions.

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Definitions:

Fixed Manufacturing

Costs associated with manufacturing that remain constant, regardless of the level of production, such as rent for factory premises.

Variable Overhead

Costs that vary with production volume but cannot be traced directly to each unit produced, such as utilities for the manufacturing plant.

Supplies Variance

The difference between the budgeted cost of supplies and the actual cost incurred.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, which can indicate changes in market prices or issues with budgeting.