A Disadvantage of "Component Standardization" Is That It

question 20

Multiple Choice

A disadvantage of "component standardization" is that it:

• A)Increases development time.
• B)Increases development cost.
• C)Increases the difficulty of inventory management.
• D)None of these are disadvantages.

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Definitions:

Bargaining Power of Suppliers

The ability of suppliers to influence the terms and conditions of the materials and goods they supply, affecting the buying company's costs and quality of inputs.

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.

Economic

Related to the production, consumption, and transfer of wealth within a community or society.