What Is Operations Management

question 50

Multiple Choice

What is operations management?

• A) A field concerned with the use of technology in managing and processing information
• B) The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
• C) The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization
• D) The management of systems or processes that convert or transform resources into goods and services

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses treated as period costs.

Units Manufactured

The total number of completed units produced by a manufacturing process during a specific period.

Variable Costing

A costing method in which variable manufacturing costs are included in product costs, while fixed manufacturing costs are treated as period expenses.