The Goal of a Feasibility Study Is

question 8

Multiple Choice

The goal of a feasibility study is:

• A) to create additional value for customers through great products or services.
• B) to create outlets for employees to bring out new ideas.
• C) to assess if a business idea can be profitably brought to market.
• D) to assess how well a preliminary run of a business works and what problems it might have.

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Definitions:

Actual Production

The real quantity of goods or services produced within a specific period, as opposed to planned or theoretical outputs.

Normal Production

The average production capacity or level of output that a manufacturing process or plant is designed to achieve under normal conditions.

Direct Material Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard quantity, multiplied by the cost per unit set by standards.

Actual Production

The total amount of output that a company has produced within a specific period.