A manager is trying to model the costs of producing shirts. The company has two different models of machines that are used for sewing the shirts together. The manager needs to know if these two types of machines should be considered the same, or different, when computing the amount of labor needed to make the shirts. The concept involved here is best described as
A) Variability
B) Capacity
C) Interchangeability
D) Interdependence

Question

Quizplus · Accepted Answer

The concept at play here is whether the two types of machines are interchangeable, meaning they can perform the same tasks and require the same amount of labor. If they are not interchangeable, then the manager cannot assume that the amount of labor needed for one type of machine applies to the other type. Therefore, the manager needs to determine if they are the same or different, i.e. interchangeable or not interchangeable. Variability is the amount of fluctuation in a process, capacity refers to the maximum output of a process, and interdependence refers to the relationship between separate parts of a process. While these concepts may be relevant to the cost analysis of producing shirts, they are not directly related to the question of machine interchangeability.

A Manager Is Trying to Model the Costs of Producing