A Facilities Layout in Which Machines That Perform the Same

question 5

Multiple Choice

A facilities layout in which machines that perform the same function are grouped together in one location is called a(n)

• A) fixed-position layout
• B) one-position layout
• C) process layout
• D) product layout
• E) flexible manufacturing system

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Definitions:

Mutually Exclusive Investments

Mutually exclusive investments are investment options where the choice of one alternative precludes the selection of another, requiring a careful comparison to choose the best option.

Capital Rationing

Occurs when investors or management place a constraint on the size of the firm’s capital budget during a particular period.

Accounting Rate of Return

A financial ratio that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.

Weighted Average Cost of Capital

The average rate of return a company is expected to pay its security holders to finance its assets, weighted by the type of capital.