The Management of Any Aspect of Production That Transforms Inputs

question 41

Multiple Choice

The management of any aspect of production that transforms inputs into finished outputs is known as ________.

• A) total quality management
• B) supply chain management
• C) operations management
• D) reengineering management

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Definitions:

Total Cost

The aggregate expenditure incurred by a business to produce, buy, or sell goods and services, including fixed and variable costs.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Average Total Cost

The total cost divided by the quantity produced, calculating the per-unit cost of production.

Variable Cost

Charges that adjust in alignment with the volume of production or output levels.