Which of the Following Is True of Flexible Factories

question 17

Multiple Choice

Which of the following is true of flexible factories?

• A) They use centralized scheduling, in which decisions are made on the shop floor.
• B) They move parts down the line from one location in the production sequence to the next.
• C) They are organized around products, in work cells or teams.
• D) They generate high volumes of a standardized product.
• E) They have long production runs.

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Definitions:

Total Cost Concept

An approach in accounting that considers the total expenditure involved in producing or acquiring a product or service, including all direct and indirect costs.

Fair Markup

Fair markup refers to a pricing strategy that involves setting the selling price of a product at a reasonable profit margin above its cost.

Selling Price

The amount of money charged for a product or service, determining the revenue earned from sales.

Sunk Cost

Costs that have already been incurred and cannot be recovered, which should not factor into future business decisions.