A Company That Wants to Reduce Set-Up Time for Complex

question 75

Multiple Choice

A company that wants to reduce set-up time for complex equipment,increase the utilization of individual machines through better scheduling,and improve quality control at all stages of the manufacturing process should adopt:

• A)standardization.
• B)diseconomies of scale.
• C)flexible machine technology.
• D)minimum efficient scale.

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Definitions:

Duration

A measure of the sensitivity of a bond’s price to changes in interest rates, expressed as the weighted average time to receive the bond's cash flows.

Macaulay Duration

A measure of the weighted average time until a fixed income asset's cash flows are received, used to assess interest rate risk.

Yield

The earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment’s cost, its current market value, or its face value.

Modified Duration

A measure of the sensitivity of a bond's price to changes in interest rates, adjusting for the bond's yield to maturity.