Longer manufacturing cycle times can result in ________.
A) lower revenues and higher inventory carrying costs
B) higher opportunity costs and low profit margins
C) lower opportunity costs and high profit margins
D) higher revenues and lower inventory carrying costs

Question

Quizplus · Accepted Answer

Longer manufacturing cycle times mean that products are taking longer to be produced and sold, resulting in lower revenues. Additionally, as the products take longer to manufacture, the inventory holding time increases, leading to higher inventory carrying costs. Therefore, option A is the correct answer.

Longer Manufacturing Cycle Times Can Result in ________