Cost reductions can be the result of ________.
A) price increments
B) congestion due to scheduling a large number of rush orders
C) producing products faster and more efficiently
D) inappropriate assignment of labor or machines to specific jobs

Question

Quizplus · Accepted Answer

Cost reductions can often be achieved by making production processes faster and more efficient, resulting in savings on labor and materials. Price increments (A) would actually increase costs, not reduce them. Congestion due to rush orders (B) may result in overtime costs or expedited shipping fees, which would not be a long-term cost reduction strategy. Inappropriate assignment of labor or machines (D) could lead to inefficiencies and mistakes, actually increasing costs rather than reducing them.

Cost Reductions Can Be the Result of ________