A Product Currently Requires Eight Moves

question 17

Multiple Choice

A product currently requires eight moves. By changing the plant layout, the number of moves can be reduced to zero. The cost per move is $150. What is the reduction in the non-value-added cost of the moving activity?

• A) $0
• B) $150
• C) $600
• D) $1,200

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Definitions:

Conduct

The manner in which a person behaves, especially in a particular place or situation.

Unauthorized Contract

An agreement made by a person who does not have the legal authority to do so on behalf of a party.

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.

Valid

Legally sound, effective, and binding.