The 'Industrial Engineering Method' Estimates Cost Functions

question 85

Multiple Choice

The 'industrial engineering method' estimates cost functions:

• A)using qualitative rather than quantitative analysis.
• B)based on analysis and opinions gathered from various departments.
• C)by analysing the relationship between inputs and outputs in physical terms.
• D)quickly while incurring little cost.

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Definitions:

Profit

The financial surplus remaining after all expenses have been deducted from total revenue, indicative of the financial success of a business operation.

Commodity

An essential commodity employed in business activities that is substitutable with other commodities of the identical category.

Maximise

The process of increasing a particular variable or outcome to its highest possible value under given constraints.

Input

Resources used in the production process to create goods or provide services.