Discuss the Advisability of Using Modular Assemblies in Manufacturing

question 122

Essay

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service products?

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Definitions:

Residual Income

The income that remains after deducting all costs, including the cost of capital, from the revenues of a business, investment, or project.

Invested Capital

The total amount of money that has been invested into a company by its owners and creditors, often used in ROI calculations.

Investment Centre

A business unit or division within an organization that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.