1
What is production?
The creation of goods and services from economic resources.
Which of the following outputs is considered an industrial good:
A freezer purchased by a restaurant owner
Planning the quantities to produce is an important part of production planning because it helps to
prevent losses to the business.
Why is routing an important production activity?
Routing establishes the production path of inputs.
Which of the following is an example of production:
Providing home security
One of the benefits of production to consumers is that production
creates form utility.
The production activity used to obtain all the resources needed for production to take place is
purchasing.
Employees who are involved in production scheduling are responsible for
Estimating how long each step in production will take.
The specific resources used in a company’s production are called
inputs.
Why is production important to businesses?
It creates goods and services businesses can sell.
An intermittent production process is a method of production in which
the process stops and then restarts.
Which production activity issues work orders telling employees what their job assignments are?
Dispatching
In production, the purpose of the conversion process is to
turn inputs into products.
Efficient production enables businesses to
Turn out the most products at the least cost.
What type of production would most likely be used to produce prescription glasses?
Unit
Which of the following is a follow-up activity in production:
Making sure that production deadlines were met
What kind of conversion process is being used in an automated assembly line that produces soft drinks?
Capital-intensive
Which of the following is a true statement about production activities:
They vary depending on the product being created.
Which of the following is a characteristic of mass production:
It often uses assembly lines.
Why do many businesses follow up after production to ensure that products meet standards set by outside organizations?
To remain competitive