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

Business

You might also like to view...

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.

Business

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

Business