Compared to Large Facilities, Focused Factories _____________________

question 56

Multiple Choice

Compared to large facilities, focused factories _____________________.

• A) bring economies of scale
• B) have much bureaucracy
• C) are ancient history
• D) lead to higher average inventories
• E) are more flexible

---

Definitions:

Debits

Entries on the left-hand side of an account that represent the increase in assets or expenses or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.

Debt Ratio

A ratio indicating a company’s leverage by comparing its total debt to its total assets.