A Basic Characteristic of Flexible Manufacturing Is That It

question 211

Multiple Choice

A basic characteristic of flexible manufacturing is that it

• A) relies heavily on labor, since humans are more adaptable than machines.
• B) uses machines designed to perform multiple tasks so they can be used to produce a variety of products.
• C) achieves its flexibility at the cost of much slower rates of production than mass production techniques.
• D) is only possible when using mass-production processes.

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Definitions:

Unused Capacity

The existing but not currently utilized production or operational capacity within a business.

External Financing

Funds a company obtains from outside sources, like bank loans or selling shares, to finance its operations.

Pro Forma Statements

Financial statements that project a company's financial performance based on hypothetical scenarios or future projections.

Percentage of Sales Approach

A financial forecasting method where various financial statement items are predicted as a percentage of sales.