Wide Product Variety Makes It Difficult for a Company to Increase

question 95

Multiple Choice

Wide product variety makes it difficult for a company to increase its production efficiency and reduce its unit costs.According to this logic,the way to increase efficiency and drive down unit costs is to:

• A)reduce setup times for complex equipment.
• B)decrease the utilization of individual machines through better scheduling.
• C)offer several customized products and adopt short production runs.
• D)limit product variety and produce a standardized product in large volumes.

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Definitions:

Financing Activities

Financing activities involve transactions between a company and its financiers, such as issuing shares, borrowing loans, and repaying debt, which are used to fund the company’s operations.

Operating Activities

Day-to-day business functions involving the production and delivery of a company's products and services.

Cash Receipts

Money received by a business during a period of time, including revenues and other inflows of cash.

Sales of Investments

Transactions involving the disposal of investment assets, such as stocks, bonds, or real estate, often to realize gains or for strategic portfolio adjustments.