ACCA Applied Knowledge · Business and Technology · Technological factors
Zeta Ltd manufactures furniture. It has installed robotic machinery that cuts wood to precise specifications with far less waste and fewer workers. Which of the following is the most likely direct benefit to Zeta from this technology?
The most likely direct benefit is lower variable cost per unit. Robotic cutting improves precision, reduces material waste and needs fewer workers. It does not guarantee market share, remove exchange rate exposure or eliminate the need for quality control.
- ALower variable cost per unit through greater efficiency and reduced wasteCorrect
- BReduced exposure to changes in exchange rates
- CA guaranteed increase in market share
- DElimination of the need for quality control
Explanation
Automation typically improves productivity and cuts waste and labour use, lowering unit costs. It does not by itself change exchange rate exposure, guarantee market share, or remove quality control needs, which remain important as machines can still produce errors.
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