Factories producing a more varied and complex mix of products have higher costs than factories producing only a narrow range of products because:
A)they require more direct labourers.
B)they require more engineers.
C)more variations and complexities require more activities.
D)they buy more robotics.

Question

Quizplus · Accepted Answer

Producing a more varied and complex mix of products requires more activities such as designing, planning, testing, tooling, and programming. This increases the cost of production compared to factories producing only a narrow range of products. Option A and B are not necessarily true as the number of direct labourers and engineers required for production depend on the type and complexity of the product rather than the variety of products being produced. Option D may be true but it is not the main reason for higher costs in factories producing a more varied and complex mix of products.

Factories Producing a More Varied and Complex Mix of Products