A Firm's Decisions Are Ultimately Oriented Toward

question 87

Multiple Choice

A firm's decisions are ultimately oriented toward:

• A) minimizing the number of employees it hires.
• B) maximizing profit.
• C) maximizing production.
• D) increasing total revenue.
• E) negotiating better deals with suppliers.

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Definitions:

Indirect Labor

Labor costs not directly associated with the production of goods or services, such as salaries of supervisors and maintenance staff.

Shop Foreman's Salary

The compensation paid to the individual responsible for overseeing the work and workers in a shop or factory setting.

Raw Materials Used

The cost of materials that are used in the production process of a company's goods or services.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, labor, and overhead expenses.