Which of the Following Is Not an Effective Way of Dealing

question 39

Multiple Choice

Which of the following is not an effective way of dealing with a production constraint (i.e., bottleneck) ?

• A)Reduce the number of defective units produced at the bottleneck.
• B)Pay overtime to workers assigned to work stations located after the bottleneck in the production process.
• C)Pay overtime to workers assigned to the bottleneck in the production process.
• D)Subcontract work that would otherwise require use of the bottleneck.

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Definitions:

Sold

The past tense of sell, indicating that a transaction where goods were exchanged for money has been completed.

Conversion Cost

The combination of direct labor and manufacturing overhead expenses, representing the costs required to convert raw materials into finished products.

November

The eleventh month of the year in the Gregorian calendar, often associated with the transition from autumn to winter in many cultures.

Manufacturing Overhead Cost

All indirect costs related to the manufacturing process, such as utilities, maintenance, and factory supervision.