A bill of materials does not include: a) overhead cost b) component assembly cos

Question

A bill of materials does not include: a) overhead cost b) component assembly cost c) transportation cost d) material cost 1. Which of the following option(s) helps to reduce cost of assembly? a) 2. Increasing numbers of separate parts which need to be assembled Minimizing ease of assembly b) d) Letting customers partly assemble the product 3. Physical prototypes are: a) representation of the product in a nontangible, usually mathematical or visual manner b) tangible approximation of the product that often look and feel like the product. c) analyzed rather than built d) computer simulated or computer models of three-dimensional geometry

Explanation / Answer

Ans 1 )a Overhead Cost

Reason: BIlls of materials include all material cost , assembly component cost and cost to bring it to the place of utilisation which includes freight or transportation cost. But doesn't include overhead cost.

Ans 2) Option D

Reason: All other options will either increase cost or make the process complicated resulting into more of outflow of resources.

Ans 3) Option B

Reason: Physical prototype are tangile components which could be touched or seen and worked on them physically.

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