Final answer:
The statement about bill of materials is true, as it lists all the inputs required for manufacturing a product. The value of physical materials is often less significant compared to the technology within a product. The location of production can depend on whether an industry is bulk reducing or bulk gaining.
Step-by-step explanation:
The statement that the bill of materials specifies the types and quantities of the raw materials and subassemblies used in producing a single unit of finished products is true. A bill of materials is an essential document in manufacturing that lists all the inputs, which are the resources such as labor, materials, and machinery, required to manufacture a product. The value of these physical materials can sometimes be small compared to the technology and intellectual property that contributes to the product’s final value. For instance, in the production of computers, the cost of plastic parts and wiring is relatively minor compared to the value of the technology enabling the computers to perform advanced processes. Moreover, understanding whether a manufacturing process is bulk reducing or bulk gaining can influence the location of production. Bulk reducing industries tend to be located near the source of raw materials to minimize transportation costs because the finished product is lighter or less expensive to ship compared to the raw materials.