Product Focused Processes

question 83

Multiple Choice

Product focused processes:

• A)allow more customization,but are not very efficient.
• B)are desirable because resource needs increase slowly with the complexity of a process.
• C)are processes that are specialized for relatively few products or customer groups.
• D)apply only to service firms,not to manufacturers.
• E)are profitable because customers demand flexibility,not specialization.

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Definitions:

Break-Even Point

The level of production or sales volume at which total revenues equal total expenses, resulting in zero profit or loss.

Fixed Costs

Costs that do not fluctuate with the level of production or sales, such as rent and salaries.

Sales Mix

The ratio of various goods or services contributing to a company's overall sales.

Break-Even Point

The point at which total revenues equal total costs, and the business is neither making a profit nor incurring a loss.