How Is a Product Layout Different from a Process Layout

question 42

Multiple Choice

How is a product layout different from a process layout?

• A) Product layout is usually used in intermittent flow operating systems whereas process layout is used in continuous flow operating systems.
• B) Product layout is used when a customized product is made whereas process layout is used when a standardized product is made in large quantities.
• C) In product layout, workers perform a wide variety of tasks whereas in process layout they specialize in a small number of simple tasks.
• D) Product layout is less flexible than process layout.
• E) Product layout requires highly skilled workers whereas process layout does not require high-skilled workers.

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Definitions:

Direct Labor Costs

Expenses related to employees who directly contribute to the production of goods or services, such as wages for assembly line workers.

Period Costs

Costs that are expensed in the period they are incurred rather than being capitalized or included in the cost of goods sold, such as selling, general, and administrative expenses.

Selling

The process of promoting and exchanging goods or services for value.

Administrative

Pertaining to the activities involved in the management, governance, or organization of a business, typically those responsible for enforcing policies and making decisions.