Phil Is the Owner of a Small Firm That Manufactures

question 73

Multiple Choice

Phil is the owner of a small firm that manufactures customized oil-drilling equipment. The company's manufacturing facility is organized into a fabrication section, a heat treatment section, a welding section, and a quality control section. This type of plant layout is referred to as which type of layout?

• A) product
• B) assembly-line
• C) group manufacturing
• D) process

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Definitions:

Discount Period

The time frame within which a payment can be made at a discounted rate from the total outstanding amount, incentivizing early payments.

Inventory

The goods or materials a business holds for the purpose of resale or production.

Cash Sales

Transactions where payment for goods or services is made immediately in cash at the time of sale.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.