The Arrival of New Manufacturing Techniques Such as Automation,flexible Manufacturing

question 63

Multiple Choice

The arrival of new manufacturing techniques such as automation,flexible manufacturing systems,and cluster or cell manufacturing has:

• A)Emphasized the importance of direct labor variances.
• B)Not had an effect on the importance of direct labor variances.
• C)De-emphasized the importance of direct labor variances.
• D)Made direct labor variances obsolete.
• E)Eliminated the need to calculate and report direct materials variances.

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Definitions:

Labor (L)

A measure of the work done by human beings in the production process, considered a factor of production in economics.

Profit-Maximizing

The process businesses follow aiming to achieve the highest possible profits by adjusting production levels, pricing, and other operational factors.

Least-Cost Combination

An economic principle where firms seek to minimize their costs of production by using the most efficient combination of resources.

Inputs

The inputs including workforce, materials, and financial investment employed in the process of manufacturing products or delivering services.