Asked by Christine Angora on May 02, 2024

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Which of the following are possible root-cause cost drivers?
i. Complexity
ii. Defects produced
iii. Plant layout
iv. Inadequate employee training

A) i, ii and iii
B) ii, iii and iv
C) i, iii and iv
D) All of the given answers

Root-Cause

The fundamental reason for the occurrence of a problem or event.

Cost Drivers

Factors or activities that have a direct impact on the cost of a product or service, influencing how much resources are used and the overall cost incurred.

Plant Layout

The arrangement of machinery, equipment, and facilities within a factory or workshop, optimizing the efficiency of operations, workflows, and safety.

  • Identify root-cause cost drivers and their impact on operational efficiency.
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Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
All the options listed (Complexity, Defects produced, Plant layout, Inadequate employee training) can be root-cause cost drivers in a business, as they all can lead to increased costs through inefficiencies, errors, or delays.