What effect does decreasing automation have on a company? Select One A. Decreases variable costs b...
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What effect does decreasing automation have on a company? |
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| Select One | ||
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A. |
Decreases variable costs by increasing the amount of production capacity |
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B. |
Decreases variable costs by decreasing the amount of workers needed |
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C. |
Decreases variable costs by increasing plant utilization |
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D. |
Both B and C |
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E. |
None of the above |
Homework Answers
Option , E, none of the above
Reason: When automation is decreased, it will result in increasing the overall variable costs for the company since more manpower will now be required to do the work that was once done by a machine. Also, the plant utilization may not increase as effectively as machine is utilized and the production capacity will remain same irrespective of the mode of manufacturing. Infact the production may be lesser when more manpower is used.
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