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Exam CMQ-OE topic 1 question 285 discussion

Actual exam question from ASQ's CMQ-OE
Question #: 285
Topic #: 1
[All CMQ-OE Questions]

A company is considering converting a portion of its existing manufacturing space to storage in order to reduce dependence on an external warehouse. The following information reflects the results of a cost-benefit analysis.

What is the total cost of the project?

  • A. $40,000
  • B. $51,000
  • C. $61,000
  • D. $63,000
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Suggested Answer: C 🗳️
by SAED007 at Feb. 21, 2023, 5:42 a.m.

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ZeroLord
1 month, 2 weeks ago
Selected Answer: B
The only 2 costs are nuilding construction changes and manufacturing layout changes there total is 51 K so the correct answer is B.
upvoted 1 times
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4f400d2
2 months, 2 weeks ago
Selected Answer: B
I agree, the correct answer is B. "Reduced transportation" and "Increased internal storage capacity" represent benefits or savings and are not included in the total cost calculation. Building construction changes: $15,000 + Manufacturing layout changes: $36,000 = $51,000.
upvoted 1 times
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SAED007
10 months ago
It should be 51
upvoted 2 times
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