Which of the Following Statements About the Relationship Between Operations

question 155

Multiple Choice

Which of the following statements about the relationship between operations management and utility is TRUE?

• A) All operations management provides utility of one type or another.
• B) Only operations management in the manufacturing sector can truly be said to provide utility.
• C) Only operations management in the service sector provides utility because it is where product and consumer meet.
• D) Operations management creates the same kind of utility regardless of the sector of the economy involved.
• E) There is no demonstrable relationship between operations management and utility.

---

Definitions:

Cost-Based Pricing

A strategy for setting prices where a specific additional amount is added to the product's unit cost to determine the sale price.

Underpriced Products

Items sold at a price below their market value or cost of production, potentially leading to losses or reduced profit margins for the seller.

Absorption Cost

A method of costing that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Mark-Up Percentage

The percentage added to the cost of goods to cover overhead and profit.