Final answer:
Operations in business include turning various inputs, such as labor, capital, and raw materials, into outputs like goods and services. In the example of pizza making, factors of production include the labor provided by the pizzaiolo, the capital in the form of cooking tools, and raw materials like flour and toppings.
Step-by-step explanation:
As a functional area of a business, Operations involves the process whereby a firm takes various inputs and transforms them into outputs, specifically goods and services that consumers use.
This is often referred to as the production function. In the context of pizza making, the inputs or factors of production in the production process would typically consist of labor (the pizzaiolo), capital (the oven, the peel, and other cooking tools), and raw materials (such as flour, water, yeast, tomatoes, spices, cheese, and other toppings).
Once the pizza is baked, it becomes the output, ready for sale to the customer.
The statement is true.