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.

---

Definitions:

Deferred Income Tax Asset

A balance sheet item that represents taxes paid or carried forward but not yet realized on the income statement.

Net Operating Loss

The deficit that occurs when a business's expenses exceed its revenues, excluding taxes and certain other expenses, over a fiscal period.

Future Profitability

An estimation or outlook on the capacity of a business to generate earnings in future periods, often considered for investments or strategy planning.

Deferred Tax Asset

A tax amount that is paid or carried forward, representing future tax savings due to overpayment or advance payment of taxes, or due to allowable temporary differences.