Question

Brenden Corp. manufactures products at the lowest cost possible. It strives to keep its manufacturing costs low and its product prices competitive. It does not provide technical support for its products as providing such support would add to its cost without earning any profit. Given this information, which of the following statements is most likely true of Brenden Corp.

Answer 1

Given the above information, the statement that is true is that Brenden Corp focuses on efficiency at the expense of effectiveness.

What is manufacturing cost?

Manufacturing cost comprises totality of all cost that is used in production. It includes all costs necessary to get a finished product from raw materials.

Manufacturing costs consist of the following:

• Cost of the raw materials
• The workers' wages
• Consumables like water and lubricants, machine depreciation, factory expenses

With regards to the above, the company tends to focus more on efficiency at the expense of effectiveness by keeping manufacturing costs low which make its product prices competitive.

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