For a Supervisor of a Manufacturing Department, Which of the Following

question 152

Multiple Choice

For a supervisor of a manufacturing department, which of the following costs is controllable?

• A) direct materials
• B) insurance on factory building
• C) depreciation of factory building
• D) rent on factory building

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Definitions:

Profit Maximization

The process or strategy of adjusting the production and sale of goods and services to achieve the highest possible profit levels.

Production Function

An equation that describes the relationship between the inputs used in production and the output generated from those inputs.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Profit Maximization

The process by which a company determines the price and output level that generates the maximum profit.