Which of the following statements is true about production in organizations?
A) Production is considered a process of conception rather than transformation.
B) The production process does not occur in most service organizations.
C) Organizational assets remain unaffected in the process of production.
D) Production can be considered to be the process of transforming inputs to outputs.
E) The production process is not considered a part of an organization's value chain.

Question

Quizplus · Accepted Answer

Production refers to the process of transforming inputs (such as raw materials, labor, and energy) to outputs (such as finished products or services). Therefore, option D is correct. Option A is incorrect because production involves both conception and transformation processes. Option B is incorrect because even most service organizations have some kind of production process (for example, a restaurant preparing food for customers). Option C is incorrect because production can affect organizational assets (such as depreciation of machines or depletion of raw materials). Option E is incorrect because production is an important part of an organization's value chain, as it adds value to raw materials and inputs.

Which of the Following Statements Is True About Production in Organizations