Which of the Following Is One of the Main Advantages

question 218

Multiple Choice

Which of the following is one of the main advantages of a product-oriented layout?

• A) high customer exposure rates
• B) employability of highly skilled labor
• C) high flexibility
• D) low capital cost
• E) low variable cost per unit

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods.

Budgeted Overhead

The estimated costs for overhead (indirect costs such as utilities, rent, and administrative salaries) that are planned for during a specific period in the budgeting process.

Total Overhead Rate

A ratio that calculates the total indirect costs of manufacture (including both fixed and variable overheads) relative to a related cost base, typically direct labor or machine hours.

Direct Labor Hours

Hours worked by employees that are directly involved in the manufacturing process, crucial for calculating product costs.