The Main Objective of Lean Manufacturing Is to

question 99

Multiple Choice

The main objective of lean manufacturing is to

• A) keep labor costs as low as possible by expanding the use of other resources.
• B) produce products that have fewer frills and options in order to simplify the production process and keep costs as low as possible.
• C) produce goods using less of all types of resources.
• D) get state and local governments to handle many of the tasks currently performed by the firm.

---

Definitions:

Capital Budgeting

The process by which investors or managers decide which capital investment projects - like new machinery or expansion plans - to undertake, based on potential profitability and risk analysis.

Opportunity Cost

A cash flow that a firm must forego to accept a project. For example, if the project requires the use of a building that could otherwise be sold, the market value of the building is an opportunity cost of the project.

Overall WACC

A comprehensive measure of a company's cost of capital, incorporating the weighted costs of its equity and debt financing.

Risk Projects

Investment initiatives or projects that carry a significant degree of uncertainty or risk regarding their outcomes or potential returns.