Manufacturers Can Lower Materials Handling Costs by Using Layout Designed

question 87

True/False

Manufacturers can lower materials handling costs by using layout designed so that product flow is automated whenever possible and flow distances and times are minimized.

---

Definitions:

Variable Manufacturing Overhead

Costs that vary with production volume, such as indirect materials and utilities, related specifically to the manufacturing process.

Labor-Hours

The total number of working hours clocked by employees within a specific period, reflecting the labor input.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of output on the basis of some common activity, such as machine-hours or labor hours.

Labor Cost

The total expense incurred by a company for the compensation of its employees.