All of the Following Are Limitations of Process Layouts EXCEPT

question 47

Multiple Choice

All of the following are limitations of process layouts EXCEPT:

• A) high material handling costs.
• B) more complicated planning and control systems.
• C) low equipment utilization.
• D) diverse range of products.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.

Fixed Costs

Fixed costs refer to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

ROI

Return on Investment, a performance metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.