Which Statement Is True Concerning Flexible Manufacturing Systems

question 124

Multiple Choice

Which statement is true concerning flexible manufacturing systems?

• A)Although costs are saved,flexible manufacturing systems increase the amount of time it takes to make changeovers.
• B)These systems require that accountants spend an increased amount of time on inventory valuation for external reporting.
• C)These systems enhance a firm's ability to utilize just-in-time.
• D)All of the answers are correct.

---

Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.

Capital

Financial assets or the financial value of assets, such as cash, used by a company to fuel its business operations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.