A Product Layout Has the Disadvantage Of

question 105

Multiple Choice

A product layout has the disadvantage of:

• A)a high fixed investment in specialized equipment.
• B)the highest materials costs with lower productivity.
• C)being harder to schedule and monitor.
• D)dividing the work area into separate operations that are highly independent with a duplication of equipment.

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Definitions:

Return on Common Stockholders' Equity

A financial ratio that measures the profitability generated from the common stockholders' equity investment, indicating how efficiently equity capital is being utilized.

Total Asset Turnover

Total asset turnover measures how efficiently a company uses its assets to generate sales, calculated as sales divided by average total assets.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period, used to assess efficiency in managing and selling products.

Dividend Yield

An economic indicator revealing the yearly dividend payment of a company as a proportion of its share price.