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A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.
 Which of the following, if true, casts most doubt on the production managers' conclusion?
 
  • a)
    In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.
  • b)
    Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.
  • c)
    Although some of the factory's managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.
  • d)
    Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A factory was trying out a new process for producing one of its produc...
The managers concluded that the new process produced a cost savings on the basis of a trial run of the process in which costs were 15 percent lower than they had been previously. You are asked to identify something that casts doubt on their conclusion.
Choice C is the best answer. If production costs at the factory fell for a similar product that was produced without using the new process, it is more doubtful that the observed production cost reductions achieved during the trial run were actually produced by the new process.
Choice A is incorrect; the fact that the managers had hoped for cost reduction of fifty percent does not cast any doubt on their conclusion that the new process had produced at least some savings. Choice B is incorrect since finding the source of the cost savings in the trial shows that the savings were no mere accident and so reinforces the managers' conclusion. Choices D and E are incorrect since by emphasizing that certain aspects of the product — its design and raw materials — were the same in the standard process and the new process, these two answer choices support, rather than cast doubt on, the conclusion that the process itself produced the savings.
 
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A factory was trying out a new process for producing one of its produc...

Analysis of Option C:

Argument:
- The argument presented by the production managers is that the new process resulted in a cost savings.

Challenging the Conclusion:
- This option challenges the conclusion reached by the production managers.

Explanation:
- The option states that some managers believe the product is outdated and should be redesigned.
- However, the implementation of the new production process does not involve any changes to the finished product.
- This implies that the cost savings may not be directly related to the new process but rather to the potential redesign of the product.

Impact on Conclusion:
- This information casts doubt on the conclusion that the cost savings are solely attributed to the new process.
- It suggests that other factors, such as product redesign, may have contributed to the cost reduction observed during the trial.

Therefore, option C is the most relevant in challenging the production managers' conclusion about the cost savings achieved through the new production process.
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A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. Can you explain this answer?
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A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A factory was trying out a new process for producing one of its products, with the goal of reducing production costs. A trial production run using the new process showed a fifteen percent reduction in costs compared with past performance using the standard process. The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. Can you explain this answer?.
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The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. 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The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. 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The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. 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The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. 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The production managers therefore concluded that the new process did produce a cost savings.Which of the following, if true, casts most doubt on the production managers conclusion?a)In the cost reduction project that eventually led to the trial of the new process, production managers had initially been seeking cost reductions of fifty percent.b)Analysis of the trial of the new process showed that the cost reduction during the trial was entirely attributable to a reduction in the number of finished products rejected by quality control.c)Although some of the factorys managers have been arguing that the product is outdated and ought to be redesigned, the use of the new production process does not involve any changes in the finished product.d)Since the new process differs from the standard process only in the way in which the stages of production are organized and ordered, the cost of the materials used in the product is the same in both processes.Correct answer is option 'C'. 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