Which of the Following Statements Describes Past Processes That Existed

question 261

Multiple Choice

Which of the following statements describes past processes that existed in manufacturing that negatively affected a firm's competitive advantage?

• A) Companies tended to produce a large quantity of the same product at a very low cost.
• B) Companies required their suppliers to only deliver the amount of good needed for a short-term production run.
• C) Companies changed their equipment too often, which created lost time on the job.
• D) Companies refused to train employees in technology and on machinery.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of finished goods, considered a variable cost.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing companies to better forecast costs and revenues.

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and training costs.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period in the future, often used for setting financial goals.