Intro Management Unit 5 Common Assessment

What is production?

• The selection of inputs for making outputs

• The process of assembling the factors of production

• The conversion process that results in time utility

• The creation of goods and services from economic resources

Which of the following is an example of production:

• Reading a new novel

• Purchasing food items

• Providing home security

• Answering your home telephone

The specific resources used in a company's production are called

• inputs

• consumer goods

• outputs

• conversion processes

In production, the purpose of the conversion process is to

• control the costs of production

• find markets for the firm's products

• turn inputs into products

• turn outdated products into new ones

One of the benefits of production to consumers is that production

• makes use of automation

• provides a way to earn profits

• creates form utility

• provides a way to be competitive

Why is production important to businesses?

• It enables businesses to charge high prices

• It eliminates competition

• It creates goods and services businesses can sell

• It informs businesses about consumers' needs and wants

Efficient production enables businesses to

• charge higher prices than competitors

• obtain advance orders for goods and services

• make an accurate forecast of sales

• turn out the most products at the least cost

The production activity used to obtain all the resources needed for production to take place is

• routing

• scheduling

• purchasing

• dispatching

Which of the following is a characteristic of mass production:

• It is considered inefficient

• It often uses assembly lines

• It produces one-of-a-kind items

• It is primarily used for small quantities

Why is routing an important production activity?

• Routing establishes company standards

• Routing issues orders for production to start

• Routing establishes a timetable for production

• Routing establishes the production path of inputs