Which Is NOT a Benefit of Lean Manufacturing

question 80

Multiple Choice

Which is NOT a benefit of lean manufacturing?

• A)increased productivity
• B)reduced lead times
• C)reduced direct labor costs
• D)reductions in inventory

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Definitions:

Contribution Margin

The amount of revenue remaining after variable costs have been deducted, which contributes to covering fixed costs and generating profit.

Opportunity Cost

The expense associated with missing out on the second-best option when a choice is made.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.