Standardization Is Employed to Squeeze Out Costs in Manufacturing

question 30

Multiple Choice

Standardization is employed to squeeze out costs in manufacturing. Standardization may be achieved through standardization of

• A) inputs.
• B) work processes.
• C) outputs.
• D) both work processes and outputs.
• E) inputs, conversion activities, and outputs.

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Definitions:

Invisible-Hand Concept

This concept, introduced by Adam Smith, suggests that the self-regulating nature of the marketplace leads to economic efficiency through individuals' pursuit of their own self-interest.

Resource Suppliers

Entities or individuals that provide the inputs or resources, such as labor, land, capital, and materials, needed for production processes.

Public Interest

The welfare or well-being of the general public and society as a whole, often considered in policy-making and law.

Efficient Combination

The optimal mix of goods and services produced with given resources to achieve maximum value or output.