Creativity Was Needed to Improve Efficiency Without Raising Costs at an Automobile

question 4

Multiple Choice

Creativity was needed to improve efficiency without raising costs at an automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____.

• A)corporate entropy
• B)organizational innovation
• C)assembly networking
• D)organizational networking
• E)reverse engineering

---

Definitions:

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Selling Price

The fixed or negotiated amount at which a product or service is sold to customers.

Fixed Costs

Business costs that do not vary with the amount of goods produced or the volume of sales.

Material Cost

The expense incurred to acquire raw materials needed to produce a product or complete a project.