Several Factors Are Integrated When Determining What Products Should Be

question 105

Multiple Choice

Several factors are integrated when determining what products should be manufactured.The factor which is predominantly driven by influences external to the production business process is

• A) product requirements.
• B) demand for the product.
• C) production resources available to the firm.
• D) Answers A and C are correct.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods.

Operating Expenses

Costs associated with a company's main operational activities, excluding direct materials, direct labor, and other direct costs, such as rent, utilities, and salaries.

Gross Profit

A financial measurement obtained by deducting the cost of goods sold from the overall sales revenue.

Written Evidence

Documented proof or records that support claims or events, often used in legal and financial contexts.