Chapter 13 Test Review

The economy begins with production.

• True

• False

With intermittent processing, raw materials constantly move through specially designed equipment, which changes them into a specific product useable for consumption.

• True

• False

Most businesses try to keep much more inventory on hand than they will need in the immediate future.

• True

• False

In the past, if there was a problem in the production process, managers and employees would try to identify the problem and then try to correct it.

• True

• False

Energy and environmental management is a responsibility of the facilities manager.

• True

• False

This type of business obtains materials from other producers and converts them into products for sales to consumers and other businesses.

• extractor

• farmer

• manufacturer

• retailer

Building a specific and unique product to meet the needs of one customer is done with

• extraction production

• mass production

• custom manufacturing

• precision manufacturing.

In 2014, U.S. businesses, universities, and government spent more than ____________________ on product research.

• $37 billion

• $3.7 billion

• $307 billion

• $307 million

The first activity in production planning is

• obtaining production resources.

• product design

• preparing production personnel

• development of a production process

Having too many products in inventory

• increases the risk that the products will become outdated before they are sold

• raises costs

• usually causes a company to miss sales

• both a and b but not c.