Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Distinguish between processes in which the inputs are nonsubstitutable and processes in which they are substitutable. A. A nonsubstitutable process exists when there is discretion

Distinguish between processes in which the inputs are nonsubstitutable and processes in which they are substitutable.

A. A nonsubstitutable process exists when there is discretion about the exact number and type of inputs or about the weighting of inputs. A process in which the inputs are substitutable leaves workers no discretion as to the components to use.

B. Nonsubsitutable processes exceed a range of outcomes that would indicate they are within control. Substitutable processes permit managers to identify causes of variance and control them.

C. A substitutable process means the effect of the inputs is to increase operating income. A nonsubstitutable process means the effect of the inputs is to decrease operating income.

D.A process in which the inputs are nonsubstitutable leaves workers no discretion as to the components to use. A process in which the inputs are substitutable means there is discretion about the exact number and type of inputs or about the weighting of inputs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Non-Finance Executives

Authors: Anurag Singal

1st Edition

1952538327, 9781952538322

More Books

Students also viewed these Accounting questions