The Operations Management Function Is Especially Important for All of the Following

question 29

Multiple Choice

The operations management function is especially important for all of the following reasons EXCEPT

• A) its governance of the transformation process.
• B) the integrative nature of business decision making.
• C) decreasing order response time.
• D) the responsibility for the quality of products and services produced.
• E) the responsibility for managing the largest portion of a firm's assets and people.

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Definitions:

Opportunity Cost

Waiving prospective gains from various alternatives by settling on one option.

Foregone Alternative

The option or course of action that is given up when another is chosen; closely related to the concept of opportunity cost.

Opportunity Cost

The charge of rejecting the following prime opportunity in the process of decision-making.

Sunk Costs

Sunk costs are expenditures that have already been incurred and cannot be recovered, and should not affect future investment decisions or operations.