Salda Industries Employs 500 Workers in the Factory

question 22

Multiple Choice

Salda Industries employs 500 workers in the factory.These workers produced 85,000 units in 2009.Due to a special order, the units produced in 2010 increased to 95,000 units.However, Salda produced these units without adding workers.How is that possible?

• A) The plant had some unused activity capacity.
• B) The employees were a flexible resource in this situation.
• C) The labor cost associated with the additional units sold will be a relevant cost.
• D) None of these

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Definitions:

Functional

relates to the specific roles and activities designed to achieve objectives within an organization, often grouped by department like marketing or finance.

Production

The process of creating, manufacturing, or producing goods and services.

Organization Chart

Visual representation of a firm’s structure that illustrates job positions and functions.

Operational Plan

is a detailed outline of how an organization's strategic goals will be achieved through specific actions and resources over a short period.