The Most Common Tactic Followed in Process-Layout Planning Is to Arrange

question 129

Multiple Choice

The most common tactic followed in process-layout planning is to arrange departments or work centers so they

• A) minimize the cost of skilled labour.
• B) maximize the machine utilization.
• C) allocate the available space equally to all the departments.
• D) minimize the costs of material handling.
• E) do not incur distance-related costs.

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Definitions:

Return On Investment

A gauge of an investment's profit, expressed as the return percentage in comparison to the cost of the investment.

Residual Income

Residual income is the profit remaining after deducting all required costs of capital from operating income.

Margin

Typically refers to the difference between the selling price of a product and its cost, used to measure profitability.

Turnover

The rate at which inventory or assets are sold and replaced or the rate at which employees are replaced in a business.