A new, energy-efficient furnace is being installed in a steel factory. Because it would have added 10% to the cost of the furnace, management has decided not to install the optional safety override for the furnace. This decision is most likely to lead to which of the following? - ANSWER- An increase in legal costs Refers to the organizational issue of balancing financial profitability with environmental responsibility - ANSWER- sustainability Operations managers rarely become involved with worker safety or environmental pollution complaints because such ethical issues are only handled by an organizations legal department. True or False - ANSWER- False SWOT analysis is used as a tool when a firm crafts a strategy that helps distinguish itself among competitors, develops competitive advantages, and avoids barriers within the business environment. - ANSWER- strategic The difference between the lowest cost producer of a good and the next lowest cost producer of the same good is known as a - ANSWER- Relative advantage Characteristics associated with a perpetual inventory system - ANSWER- -when a company needs to know exact inventory balances at all times -when a company wants accurate financial statements Under what two conditions should I periodic review system be adopted - ANSWER- -When a supplier will only deliver at a specific interval -when a company must manually track inventory levels SWOT analysis is used as a tool when used to uncover exploitable opportunities within the competitive landscape. - ANSWER- simple What best describes a competitive advantage? - ANSWER- A capability valued by customers that gives a firm in edge over its rivals