One of the Disadvantages of a Product Layout Is That

question 23

Multiple Choice

One of the disadvantages of a product layout is that it has:

• A) high materials handling.
• B) high work-in-progress inventory.
• C) low flexibility.
• D) low labor utilization.

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Definitions:

Incurred Costs

Expenses that have been realized in the course of business operations.

Alternatives

Different options or choices available in a decision-making process.

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.