Many Firms Are Concluding That Large, Centralized Manufacturing Facilities in Low-Cost

question 7

True/False

Many firms are concluding that large, centralized manufacturing facilities in low-cost countries with poorly trained workers are not sustainable.

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Definitions:

Operating Income

Earnings from a company's main business activities, excluding expenses such as interest and taxes.

Variances

The difference between planned or expected results and actual results in financial performance.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profit or loss.

Standard Direct Materials

The predetermined cost and quantity of direct materials that are expected to be used in the production of a product.