Product-Oriented Layouts Tend to Have High Levels of Work-In-Process Inventories

question 270

True/False

Product-oriented layouts tend to have high levels of work-in-process inventories.

---

Definitions:

Pre-Tax Net Income

The income earned by a business before the deduction of tax expenses.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity.

Absorption Costing

A product costing approach that incorporates all costs of manufacturing, including both fixed and variable, into the product's price.