Which of the following production strategies is most appropriate for a low-cost business?
A)Emphasize quality in operations even when the cost of doing so is high.
B)Emphasize quality in operations when the cost of doing so is relatively low.
C)Emphasize operation efficiencies through learning,economies of scale,and capital-labor substitution possibilities.
D)Emphasize specialized quality in operations even when costs are high.

Question

Quizplus · Accepted Answer

A low-cost business requires efficient operations to keep costs down. Emphasizing operation efficiencies through learning, economies of scale, and capital-labor substitution possibilities is the most appropriate production strategy for achieving this goal. Emphasizing quality, especially specialized quality, can increase costs and is not as important for a low-cost business.

Which of the Following Production Strategies Is Most Appropriate for a Low-Cost