Although a Process Layout Often Reduces Efficiency, It Is Preferred

question 67

Multiple Choice

Although a process layout often reduces efficiency, it is preferred for manufacturing custom products because

• A)it is more cost effective.
• B)it provides increased flexibility.
• C)standardization is impossible.
• D)it reduces mistakes made by workers.

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Definitions:

Consolidation Purposes

The process of combining the financial statements of a parent company and its subsidiaries into one comprehensive financial statement package, to present as if the group were a single entity.

Excess Amortizations

The amount by which amortization expense exceeds the amount necessary to amortize the cost of a tangible or intangible asset over its useful life.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets or services between divisions or subsidiaries within the same entity, which may need to be adjusted for in consolidated financial reporting.

Depreciation Purposes

The allocation of the cost of an asset over its useful life for accounting and tax purposes.