Which One of the Following Is Not Common to Product

question 150

Multiple Choice

Which one of the following is not common to product layouts?

• A) A high rate of output
• B) Specialization of labour
• C) Low unit costs
• D) Ability to adjust to changes in the product mix demand
• E) All of the choices are common

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Definitions:

Selling and Administrative Expenses

Costs incurred that are not directly tied to the production of goods, such as marketing and office expenses.

Factory Overhead

All indirect costs associated with manufacturing that are not directly tied to a specific product, such as maintenance, utilities, and quality control.

Multiple Products

The practice of producing or selling more than one type of product by a single firm, often to diversify market reach and revenue sources.

Activity-based Costing

An approach to cost allocation where overhead and indirect costs are apportioned to corresponding products and services according to the activities they necessitate.