Why Might Labor Costs Be Reduced in a Value Stream

question 159

Multiple Choice

Why might labor costs be reduced in a value stream system?

• A)The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers.
• B)The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams.
• C)Some of the workers can be cross-trained to perform value-added activities within the value stream.
• D)none of the above.

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Definitions:

Real GDP

The total value of all goods and services produced in a country in a year, adjusted for inflation or deflation.

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a comparison point.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.

Net Exports

Represents the difference between a country's total value of exports and its total value of imports over a certain period.