PRODUCTS AND PROCESSES- Worked answers for 13-18

PRODUCTS AND PROCESSES- Worked answers for 13-18 - 13 Which...

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13. Which of the following is (are) true statements? I. Value-added refers to the difference between the value of inputs and the value of the outputs of an operation. (5Stevendon,notes7) II. A basic difference between manufacturing and services is that service production implies a tangible output. (notes4) III. Service production often implies a high degree of customer contact. (54Stevenson,notes4) Value added is the difference in value a product has before and after some type of process. Another way to word the same thing would be statement one. To make statement two true it would read “ A basic difference between manufacturing and services is that service production implies intangible and manufacturing implies tangible output.” The third statement is true service production has a high degree of customer contact. This is because services are provided and often tailored to the customer and to find what the customer wants it involves customer contact. a) I and II b) I and III c) III only d) II and III e) I, II, and III 14. Which of the following is usually true of a product in the “maturity” phase of its product life cycle? (p.132 Stevenson, notes 6) b) I. It has become rather standardized, produced by larger firms in relatively high volume. c) II. It is produced by many, relatively small firms. d) III. It is sold at a relatively high price, and many potential customers are not familiar with it. A key characteristic of the maturity phase of a product is it highly standardized and produced by a few large firms because the price of the product is on the decline and the only firms that can to afford to produce it can because of the economies of scale. Choice
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This note was uploaded on 08/30/2011 for the course MGO 302 taught by Professor Hancock during the Fall '08 term at SUNY Buffalo.

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PRODUCTS AND PROCESSES- Worked answers for 13-18 - 13 Which...

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