To Improve the Work Environment for Its Engineers, Segment

question 110

Multiple Choice

To improve the work environment for its engineers, Segment.com rearranged its work areas to move the engineers to the quietest area of its building, and moved its sales and marketing force to to the loudest area.The result was an increase in output equivalent to hiring 10 to 15 additional workers.Which of the following statements best describes this change at Segment.com?

• A)The change implemented is not an example of technological change because it did not require the use of new machinery or equipment.
• B)Technological change refers only to the introduction of new products or improvements to existing products. As such, the scenario described in the question is not technological change.
• C)The firm is able to produce more output using the same number of inputs. Therefore, Segment.com has implemented a positive technological change.
• D)The scenario described is an example of management efficiency and not technological change. Essentially, the firm changed its way of operating its business.

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Definitions:

Raw Material

Basic materials used in the production process that are transformed into finished goods through manufacturing.

Fixed Overhead

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance, necessary for maintaining a business’s operations.

Direct Labor-Hours

A unit of measure representing the actual hours worked by employees directly involved in the production process.

Depreciation

A structured approach to spreading out the cost of a solid asset over the period it is expected to be useful.