A product currently requires eight moves. By changing the plant layout, the number of moves can be reduced to zero. The cost per move is $150. What is the reduction in the non-value-added cost of the moving activity?
A) $0
B) $150
C) $600
D) $1,200

Question

Quizplus · Accepted Answer

The reduction in non-value-added cost is calculated by multiplying the number of moves eliminated (8) by the cost per move ($150), resulting in a reduction of $1,200.

A Product Currently Requires Eight Moves