Which of the Following Statements About Standardization Is NOT Correct

question 106

Multiple Choice

Which of the following statements about standardization is NOT correct?

• A)Standardization is used as the basis for custom-made machinery.
• B)The availability of standardized parts makes the replacement of defective and worn-out components possible.
• C)Standardized parts can reduce the cost of repairs.
• D)Standardized parts can be produced in quantity and assembled later.

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Definitions:

Return On Equity

An indicator of financial performance determining how effectively a company uses shareholders' funds to generate income, reflecting efficiency in utilizing investor capital.

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.