Flagler Corporation Takes Eight Hours to Complete the Setup Process

question 21

Multiple Choice

Flagler Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Flagler's non-value-added cost would be:

• A) $0.
• B) $150.
• C) $300.
• D) $900.
• E) $1,200.

---

Definitions:

Planning Phase

The stage in project management or any strategic process where objectives are set, strategies are defined, and tasks and schedules are established.

Evaluation Phase

A stage in the product development process where the performance and feasibility of a product are assessed.

Forecasting

The process of making predictions based on past and present data and analyzing trends to guide future decision-making.

Hierarchy of Effects

A concept in marketing and advertising that outlines the steps a consumer goes through, from first becoming aware of a product to making the purchase decision.