Which of the Following Statements Concerning a Firm's Operations Strategic

question 28

Multiple Choice

Which of the following statements concerning a firm's operations strategic decisions is NOT correct?

• A) Strategic decisions should be established in a distinctly separate manner without regard to other functional disciplines within an organization.
• B) Strategic decisions should be developed for each of the decision responsibilities of process, quality, capacity, and inventory.
• C) Strategic decisions should indicate how operations objectives would be achieved.
• D) Strategic decisions may call for difficult trade-offs or choices.

---

Definitions:

Conversion Costs

Costs incurred in the process of converting raw materials into finished goods, primarily comprising direct labor and manufacturing overhead.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units of production during a specific time period.

First-In, First-Out

An inventory valuation method where the first items placed in inventory are the first sold.

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing of a product and are easily traceable to the product being manufactured.