Question
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.
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