Which of the Following Increases Effectiveness for the Facilities Driver

question 24

Multiple Choice

Which of the following increases effectiveness for the facilities driver?

• A) Few facilities
• B) Centralized facilities
• C) Minimal amounts of excess capacity
• D) Functional focus operational design

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.

Direct Manufacturing Cost

Costs that are directly attributable to the production of a specific product, including direct materials and direct labor.

Indirect Manufacturing Cost

Costs related to production that are not directly associated with the product, such as maintenance, supervision, and utilities.

Incremental Manufacturing Cost

The additional cost incurred to produce one more unit of a product, often considered for decision-making in production processes.