Production Is Concerned About Reducing Costs in the Short-Term Whereas

question 65

Multiple Choice

Production is concerned about reducing costs in the short-term whereas R&D is concerned about innovation, which is long-term. This is an example of ________.

• A) educational differences
• B) standardization
• C) subunit orientation
• D) integration

---

Definitions:

Direct Labor

Direct labor costs are the wages and benefits paid to employees who are directly involved in producing goods or providing services.

Standard Labor Cost

The predetermined cost of the labor necessary to produce a unit of output, based on expected productivity rates.

Produced

Refers to items that have been completed and are ready for sale or distribution, typically finished goods in a manufacturing context.

Total Cost

The complete cost of producing or acquiring goods or services, including variable and fixed costs.