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Question

Lazy Linda Ltd manufactures small kitchen appliances. One of the non-value

added activities identified by the production manager is 'reworking the electrical component in a toaster'. Which of the following is a likely root cause cost driver?
Select one:
a. The quality of the completed toaster.
b. Idle labour hours.
c. The quality of the electrical wiring purchased from suppliers.
d. The number of products requiring rework.

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Lazy Linda Ltd manufactures small kitchen appliances. One of the non-value added activities identified by the production manager is 'reworking the
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