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:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during the period.

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets.

Capital Gains

The profit from the sale of a property or an investment when the selling price exceeds the purchase price.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the portion of an incremental income that is paid in taxes.