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.

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Definitions:

Variable Factory Overhead

Costs in the manufacturing process that fluctuate with production volume, such as materials and labor directly involved in production.

Controllable Variance

The difference between actual costs and budgeted costs that a manager has direct control over in a given period.

Favorable Volume Variances

Differences between the expected volume of production or sales and the actual volume that lead to lower costs or higher profits than planned.

Production Capacity

The maximum output that an organization can produce in a given period under normal working conditions, considering available resources.