Question

Glen is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money he uses to purchase his tools and the electricity he uses to run his power saw are___________.
A) processes.B) outputs.C) stocks.D) inputs.E) inventories.

Answer 1

Answer:

D) inputs

Explanation:

Inputs are to the resources used in the production of goods and services. They include raw materials, labor, and overheads used in the production process. Inputs are usually an expense in the business. A business is profitable when its revenue exceeds inputs.

Businesses endeavor to minimize the costs of their inputs to maximize profits.  Inventories are the finished products waiting to be sold, while stocks may refer to raw materials in the store. The term output is often used to mean goods and services produced.