Which of the Following Industries Is Most Likely to Have

question 93

Multiple Choice

Which of the following industries is most likely to have low equipment utilization?

• A) auto manufacturing
• B) commercial baking
• C) television manufacturing
• D) steel manufacturing
• E) restaurants

---

Definitions:

Manufacturing Overhead

Indirect factory-related costs that cannot be directly traced to a specific product, including salaries of supervisors, rent, and utilities of the factory.

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when a particular decision is made, indicating the cost of missed opportunities.

Alternatives

Different choices or options available to a decision-maker in a decision-making process.

Potential Benefit

The anticipated advantage or value that might be gained from a particular action or investment, not assured but possible.