As Compared to Rigid Automation, the Benefits of Flexible Manufacturing

question 79

Multiple Choice

As compared to rigid automation, the benefits of flexible manufacturing systems include

• A)reduced labor requirements.
• B)higher efficiency.
• C)larger batch sizes.
• D)significantly lower fixed costs.
• E)significantly lower variable costs.

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Definitions:

Unit Product Cost

It represents the total cost to produce one unit of product, including direct materials, direct labor, and manufacturing overhead.

Variable Costing

An accounting method that includes only variable production costs (material, labor, and overhead) in product costs, with fixed overhead expenses treated as period costs.

Common Fixed Expenses

Fixed costs that are not tied to any specific product or segment and are incurred by the business as a whole.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from operating revenues.