Which of the Following Is NOT a Factor Affecting the Elements

question 21

Multiple Choice

Which of the following is NOT a factor affecting the elements of a facilities strategy?

• A)Cost of facilities
• B)Likely behavior of competitors
• C)Business strategy
• D)Whether the company uses make-to-stock or assemble-to-order
• E)International considerations

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Factory Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, maintenance of equipment, and factory staff salaries, excluding direct labor and direct materials.