Which production approach uses large quantities of the same product to reduce costs through standardization?

Which production approach uses large quantities of the same product to reduce costs through standardization?

• A. Job production
• B. Batch production
• C. A business plan
• D. Mass production

Answer: (D)

The idea being tested is producing on a very large scale with standardization to lower costs. Mass production fits this because it relies on making huge quantities of the same product using streamlined, standardized processes such as assembly lines. When you produce many units of the same item, fixed costs are spread over more units, labor and machinery can be specialized, and components are standardized, all of which drive down the cost per unit. In contrast, job production focuses on custom, one-off products for specific orders, which tends to be more expensive per unit. Batch production makes sets of identical items, but not necessarily in the very large quantities and highly standardized flow that mass production aims for. A business plan isn’t a production method at all.

The idea being tested is producing on a very large scale with standardization to lower costs. Mass production fits this because it relies on making huge quantities of the same product using streamlined, standardized processes such as assembly lines. When you produce many units of the same item, fixed costs are spread over more units, labor and machinery can be specialized, and components are standardized, all of which drive down the cost per unit.

In contrast, job production focuses on custom, one-off products for specific orders, which tends to be more expensive per unit. Batch production makes sets of identical items, but not necessarily in the very large quantities and highly standardized flow that mass production aims for. A business plan isn’t a production method at all.