In evaluating the efficiency of a production department, management should:
A. Consider all costs of production across departments.
B. Consider that department activities only.
C. Consider all corporate-wide period costs.
D. Compare the costs of production across departments.
B
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E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing only once a product is ordered
Which of the following will be true for E&OE? A) Short production runs will be more expensive than longer ones. B) Setup and order-processing costs will be high. C) The order point will be high. D) Order-processing costs will be lower than the inventory-carrying costs. E) E&OE can reduce the average cost per unit by producing a long run.
When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________
A) industrial design rights B) franchising C) joint venture D) equity venture