Which of the Following Does Not Contribute to Reduced Setup

question 79

Multiple Choice

Which of the following does not contribute to reduced setup time and cost?

• A)Grouping internal and external setup activities
• B)Train operators and standardize the setup procedure
• C)Streamline setup procedures for products
• D)Use of multipurpose equipment or attachments
• E)Use of group technology

---

Definitions:

Fixed Cost

Payments that do not vary with the amount of production or sales activities, including costs like renting spaces, salary payouts, and insurance contributions.

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the ratio of fixed costs to variable costs.

Net Operating Income

The amount of profit a company makes from its normal business operations, excluding any income or costs from investments and other non-core business activities.

Sales Volume

The quantity of goods or services sold by a company within a specific period, used to measure business performance.