One advantage of level production is that
A) manpower and equipment are used efficiently at lower cost.
B) current assets fluctuate more than with seasonal production.
C) seasonal bulges and sharp declines in current assets occur.
D) None of the options are advantageous.

Question

Quizplus · Accepted Answer

Level production allows for a consistent use of manpower and equipment throughout the year, leading to more efficient usage and lower costs. This helps to avoid the fluctuations in current assets that occur with seasonal production, as mentioned in options B and C. Therefore, option A is advantageous. Option D is incorrect for obvious reasons.

One Advantage of Level Production Is That