Standardization Is Employed to Squeeze Out Costs in Manufacturing

question 38

Multiple Choice

Standardization is employed to squeeze out costs in manufacturing.Standardization may be achieved through standardization of

• A) inputs.
• B) work processes.
• C) outputs.
• D) work processes and outputs.
• E) inputs, work processes, and outputs.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Working Capital

Working capital is the difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Long-Term Liquidity

Measures a company's ability to meet its long-term financial obligations, indicating financial health over a prolonged period.

Contingent Liability

A potential financial obligation that may occur in the future, depending on the outcome of a specific event.