Fony Corp, Headquartered in China, Is a Leading Manufacturer of Electronic

question 25

Multiple Choice

Fony Corp., headquartered in China, is a leading manufacturer of electronic devices and solutions intended for professional markets. The company is considering upgrading the technology currently being used at Fony's manufacturing facility, located in Guangdong, that specializes in producing lithium-ion batteries, which are used to power laptops, cameras, cell phones, and other similar gadgets. The new technology is expected to increase efficiency levels and will also allow for greater adherence to quality standards.
-Which of the following, if true, would most weaken the argument that Fony Corp. should upgrade its technology?

• A) Employees fear that the new technology will render them obsolete.
• B) The company will be able to recover the cost of the technology within four years of implementation.
• C) The new technology is expected to reduce the company's overall cost of production.
• D) The company's main client is threatening legal action after it had to recall nearly 2 million notebooks owing to defective batteries.
• E) The technology which the company is considering adopting was recently developed and has not yet been successfully implemented in a real business context.

---

Definitions:

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacture of products.

Charged

Charged refers to recording or incurring an expense or cost against a company's accounts or to the process of loading a financial obligation onto a financial account.

Cost Accounting Systems

Methods and procedures used for collecting, classifying, analyzing, and allocating costs associated with a process, product, or project.