A project which is designed to improve the manufacturing efficiency of a firm but will generate no additional sales revenue is referred to as a(n)________ project.
A)sunk cost
B)opportunity
C)cost-cutting
D)revenue-cutting
E)revenue-generating

Question

Quizplus · Accepted Answer

A cost-cutting project aims to reduce the cost of production, but it does not generate any additional sales revenue. This project helps to increase profitability by reducing manufacturing costs, improving efficiency, and optimizing resources. It is a type of capital budgeting project that focuses on cost reduction and improving operational performance within the organization. Therefore, option C, cost-cutting is the best choice.

A Project Which Is Designed to Improve the Manufacturing Efficiency