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Production
Production is any process or procedure developed to transform a set of input elements such as men, materials capital, information and energy into a specified set of output elements like finished products and services in proper quantity and quality thus achieving the objectives of an enterprise. The spirit of production is the formation of goods, may be by the transformation of raw material or by assembling so many small parts (as in television or scooter manufacturing). Production in everyday life can be noticed in factories hospitals offices etc, there are four recognized factors of production:
According to E .S. Buffa, production is a procedure by which goods and services are created. In common production is the use of any process or procedure designed to transform a set of input elements into a set of output element, which have use value and economic value.
Spencer Inc. has the following information for the current year: Net income = $600; Net operating profit after taxes (NOPAT) = $500; Total assets = $4,000; Short-term investments =
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Suppose that you are the manager of a production department that uses 400 boxes of rivets per year. The supplier quotes you a price of $8.50 per box for an order size of 199 boxes
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