Production facilities that are flexible in terms of possible raw materials used are most valuable when:
A) Product demand is highly volatile.
B) Product price is highly volatile.
C) Raw material prices are highly volatile.
D) Labor costs are highly volatile.

Question

Quizplus · Accepted Answer

Flexible production facilities are most valuable when raw material prices are highly volatile because they allow a company to switch between different raw materials based on cost, ensuring cost-effectiveness and maintaining profitability.

Production Facilities That Are Flexible in Terms of Possible Raw