The MOST significant effect of an inefficient production process is ________.
A)decreased profits and increased production costs
B)higher employee turnover and poorly qualified staff
C)decreased demand for product and lower sales
D)increased levels of competition and decreased profits

Question

Quizplus · Accepted Answer

An inefficient production process leads to decreased productivity, which increases production costs and reduces profits. This, in turn, makes the product more expensive for customers, leading to decreased demand and lower sales. It may also lead to increased levels of competition as competitors with more efficient production processes are able to offer the same product at a lower cost. However, the most significant effect is the impact on profitability and production costs.

The MOST Significant Effect of an Inefficient Production Process Is