A project that will improve the manufacturing efficiency of a firm but will generate no additional sales is referred to as a(n)_____ project.

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A cost-cutting project is focused on improving the efficiency of a firm's operations or reducing costs, without generating additional sales. It is aimed at improving the profitability of the firm by reducing expenses. A sunk cost is a cost that has already been incurred and cannot be recovered, an opportunity cost is the cost of the foregone alternative, a revenue-cutting project is aimed at decreasing sales or revenue, and a revenue-generating project is focused on increasing sales or revenue.

A Project That Will Improve the Manufacturing Efficiency of a Firm