Which of the Following Statements Is NOT True of Standardization

question 66

Multiple Choice

Which of the following statements is NOT true of standardization?

• A)Standardization is used as the basis for custom-made machinery.
• B)The availability of standardized parts makes possible the replacement of defective and worn-out components.
• C)Standardized parts can reduce the cost of repairs.
• D)Standardized parts can be produced in quantity and assembled later.

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Definitions:

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, influencing the net cash flow from operating activities.

Financing Activities

Transactions and events involving the flow of cash between a company and its owners, investors, or creditors.

Indirect Method

A reporting approach used in statement of cash flows to adjust net income for non-cash transactions and changes in working capital to arrive at cash provided by or used in operating activities.

Operating Activities

Activities related to the core business operations of a company, including production, sales, and delivery of the company's products and services.