Which term is defined as resources such as materials, labor, money, and equipment used to produce goods?

• A. Outputs
• B. Inputs
• C. Product Layout
• D. Process Layout

Answer: (B)

In production, the term for the resources used to make goods—materials, labor, money, and equipment—is inputs. These are the things you put into a process to create something else. Materials are what the product is made from, labor is the human effort involved, money (often called capital) funds the operation, and equipment enables the transformation of those inputs into finished goods. The reason this is the best choice is that it matches the idea of what goes into creating products, not what comes out. Outputs are the finished goods or services produced, which is the result of using those inputs. The other terms refer to how a facility is arranged to move and process work, not to the resources themselves.