Which of the Following Statements Describes Past Processes That Existed

question 261

Multiple Choice

Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?

• A) Companies tended to produce a large quantity of the same product at a very low cost.
• B) Companies required their suppliers to only deliver the amount of good needed for a short-term production run.
• C) Companies changed their equipment too often, which created lost time on the job.
• D) Companies refused to train employees in technology and on machinery.

---

Definitions:

Master Budget

A document that integrates all the estimates from the different departments to establish guidelines and benchmarks for the whole organization.

Favorable Variance

A financial term indicating that actual spending was less than budgeted amounts, or revenue was higher than expected.

Fixed Overhead

Refers to the regular, static expenses of operating a business that are not affected by changes in production volume or sales.