Lazy Linda Ltd manufactures small kitchen appliances. One of the non-value added activities identified by the production manager is 'reworking the electrical component in a toaster'. Which of the following is a likely root cause cost driver?

Question

Quizplus · Accepted Answer

The root cause cost driver for reworking the electrical component in a toaster is likely the quality of the electrical wiring purchased from suppliers. If the wiring purchased is of poor quality, it may result in the electrical components of the toaster failing and needing to be reworked. The other options, such as the number of products requiring rework, the quality of the completed toaster, and idle labour hours, may be contributing factors but are not the primary root cause.

Lazy Linda Ltd Manufactures Small Kitchen Appliances