A Higher Level of Fixed Automation Can Be Justified By

question 65

Multiple Choice

A higher level of fixed automation can be justified by:

• A) decreased labor productivity.
• B) longer cycle time.
• C) higher demand volumes.
• D) lower sales.

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Definitions:

Net Operating Income

The profit a company generates from its operations, excluding taxes and interest, calculated as revenues minus expenses.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue, excluding investments and non-essential assets.

Return On Investment

An evaluation tool for gauging the productivity or returns of an investment, achieved by dividing the net earnings by the investment's expense.

Investment Opportunity

An economic or financial situation in which one might invest money with the expectation of achieving a positive return.