The Primary Objective of a Manufacturing Organization's Production Process Is

question 35

Multiple Choice

The primary objective of a manufacturing organization's production process is to:

• A)Maintain inventories at a zero level
• B)Convert raw materials into finished goods as efficiently as possible
• C)Make sure that there are no product defects
• D)Maintain the documentation and report on an organization's manufacturing process

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Definitions:

Operating Activities

Transactions and events that pertain to the core business functions of an organization, influencing net income.

Inventory Decrease

A reduction in the quantity of goods held in stock by a company.

Investing Activities

Transactions involving the purchase and sale of long-term assets or investments, part of a company’s cash flow.

Cash Payments

Financial transactions involving the outflow of cash to settle obligations or purchase goods and services.