Tom,Dan,and Philip Work in Different Teams at Leo Motors

question 7

Multiple Choice

Tom,Dan,and Philip work in different teams at Leo Motors.Tom's team ensures that all the raw materials,machinery,tools and other production equipments are available for the employees round the clock.Any procurement needs have to be addressed to Tom,who also takes a call on the strategic decisions regarding the number of units to be produced,exported,etc.Dan works in a team of eight members who concentrate on the day-to-day production.They also ensure the quality checks are done and inspect each other's work.Philip is the operation manager,who works for five hours in the production department and then heads off to assist the management.His feedback is very crucial in improving the production process.

• A)work
• B)management
• C)parallel
• D)action
• E)project

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or business activity.

Markup Percentage

The percentage increase between the cost to produce or purchase a product and its selling price.

Product Cost Concept

An accounting approach that includes costs directly associated with manufacturing a product, including raw materials, labor, and overhead expenses.

Manufacturing Costs

The total expenses involved in making a product, including direct materials, direct labor, and factory overhead.