Question

Which of the following is not true about process layouts when they are compared to product layouts? A. lower rates of output B. higher in-process inventories C. lower unit cost D. more involved cost accounting E. lower span of supervision

Answer 1

Process layouts when they are compared to product layouts doesn't provide with lower unit costs.

Option C

Explanation:

Process layout, in manufacturing engineering is the design for the floor plan of a plant. It generally focuses on utilizing the plant with improved efficiency by ordering or arranging the equipment based on its function. These layouts are custom for those companies where the demand for the product is low and    they would follow custom work.

Product layout, in manufacturing engineering denotes the production system in which the tools, machines or equipments are placed based on the production line.

The production cost involved in product layout is low variable cost and high fixed cost and for process layout it would be high variable cost and comparatively low fixed cost.