Amber Engineers Inc

question 93

Multiple Choice

Amber Engineers Inc.wants to be able to customize products for different national markets and in turn increase its customer responsiveness.However,the fixed costs associated with its production are high.Hence,these functions will be performed most efficiently if Amber Engineers

• A)sets up a production facility that is well suited for mass production.
• B)establishes multiple manufacturing facilities in each major national market.
• C)increases each manufacturing unit's minimum efficient scale of output.
• D)adopts flexible manufacturing technologies to help achieve mass customization.
• E)locates its production unit in countries that have fluctuations in exchange rates.

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Definitions:

Operating Activities

The day-to-day activities of a company involved in producing and selling its products or providing services, which generate most of the company's cashflows.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions, depreciation, and changes in working capital.

Depreciation Expense

The portion of an asset's initial cost allocated over a specific period as an expense, reflecting its usage and deterioration.

Operating Activities

Activities that relate directly to the business's primary operations, like selling products or services, as opposed to investment or financing activities.