The Most Common Tactic Followed in Process-Layout Planning Is to Arrange

question 131

Multiple Choice

The most common tactic followed in process-layout planning is to arrange departments or work centers so they

• A) minimize the cost of skilled labor
• B) maximize the machine utilization
• C) allocate the available space equally to all the departments
• D) minimize the costs of material handling
• E) none of the above

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Definitions:

Variable Cost

A cost that varies in direct proportion to changes in the level of production or sales volume, such as materials and direct labor.

Financial Advantage

A benefit or gain in financial terms, often seen as an upper hand in economic dealings or investments.

Variable Costs

Expenses that vary directly with the amount of activity or output in a company.

Financial Advantage

The benefit obtained by a business from its financial decisions and strategies.