Which One of the Following Statements About an FMS Is

question 16

Multiple Choice

Which one of the following statements about an FMS is true?

• A) No human intervention is required to load or operate the system.
• B) Because an FMS does not require a large initial investment, it can be easily installed.
• C) Automated tool changing is actually slower than manual tool changing, but the system performs it without fatigue or error so the benefits are accrued over the long-term.
• D) Programs and tooling setups can be changed with almost no loss of production time.

---

Definitions:

Variable Overhead

Costs that fluctuate with production volume, such as utility expenses or materials costs, which increase or decrease as production levels change.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the predetermined rate.

Variable Manufacturing Overhead

Production costs that change in proportion to the level of production activity, including items such as indirect labor costs.

Actual Direct Labor Cost

The actual amount spent on wages for workers who are directly involved in producing goods or providing services.