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Georgia [21]
3 years ago
14

Explain how motor vehicle production is a bulk-gaining industry ap human geo

Business
1 answer:
zhannawk [14.2K]3 years ago
6 0

A bulk gaining industry is one where the product gains weight or volume through the production process (the whole is greater than the sum of the parts). Due to logistical and transportation costs it is advantageous to produce bulk-gaining materials closer to where they are sold. This is why foreign car companies (Toyota, mazda, etc) have US-based production plants to save on these costs.

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Estimate the nonvalue-added cost for each situation. a. A manual insertion process takes 30 minutes and 8 pounds of material to
Viktor [21]

Answer:

Estimation of the non-value-added Cost:

a) Cost of automating the insertion process:

Machine time cost = 15/60 x $8 = $2

Material cost = 7.5 x $10 = $75

Total automation cost = $77

b) Cost of redesigning the gear:

Cost per setup hour = $50 x25% = $12.50

c) Movement cost:

Cost for movement = $20 x 6 = $120

d) Inspection cost:

Cost of inspection = 16,000 x $12 = $192,000

Explanation:

Non-Value Added activities, according to goleansixsigma.com, "are the process steps that do not meet one or more of the following criteria: 1) The step transforms the item toward completion (something changes).  2) The step is done right the first time (not a rework step).  3) The customer cares (or would pay) for the step to be done."

A non-value-added cost is a production expense that does not increase the amount customers are willing to pay for the finished product.  Examples are inspection cost, movement cost, and automation cost.

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igor_vitrenko [27]

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Which of the following is NOT a type of memo?
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