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

question 129

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 labour.
• B) maximize the machine utilization.
• C) allocate the available space equally to all the departments.
• D) minimize the costs of material handling.
• E) do not incur distance-related costs.

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Definitions:

Variable Costing

A pricing approach that incorporates only variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the costs of products.

Total Period Cost

The sum total of all expenses incurred by a business within a specific period, not directly tied to the production process.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Unit Product Cost

The total cost associated with producing a single unit of product, including direct materials, direct labor, and allocated overhead.