The Advantages of Automation Include

question 20

Multiple Choice

The advantages of automation include:
(I) reduced output variability.
(II) reduced variable costs.
(III) machines don't strike or file grievances.
(IV) machines are always less expensive than human labor.

• A)I and IV
• B)II and III
• C)I, II, and III
• D)I and III
• E)II and IV

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Definitions:

Applied Manufacturing Overhead

The allocated cost of manufacturing overhead to specific jobs or production units based on a predetermined rate.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial performance of a company's core activities.

Finished Goods Inventory

The value of a company’s products ready for sale at the end of an accounting period, sitting in the inventory.

Cost of Goods Manufactured

The total production cost of goods that were completed during a specific accounting period.