All of the Following Decisions Fall Within the Scope of Operations

question 119

Multiple Choice

All of the following decisions fall within the scope of operations management except for

• A) creating the company income statement.
• B) design of goods and processes.
• C) location of facilities.
• D) managing quality.
• E) layout of facilities.

---

Definitions:

Inferior Good

A type of product whose demand decreases when the income of consumers increases and vice versa.

Demand Coefficient

A measure that indicates the sensitivity or responsiveness of the quantity demanded of a good or service to changes in its price.

Normal Good

A good for which demand increases as the income of individuals or the economy grows, and decreases when income falls.

Income Responsiveness

The degree to which demand for a product or service changes in response to changes in consumer income.