Final answer:
Level production schedules have the advantage of reducing overall production costs.
Step-by-step explanation:
Level production schedules usually have the advantage of reducing overall production costs. This is because level production schedules involve producing a consistent quantity of output over a specific period, which allows for better planning and utilization of resources. By avoiding production fluctuations, companies can optimize their production processes and minimize waste, leading to cost savings.
For example, suppose a manufacturing company decides to implement a level production schedule for a specific product. They produce a consistent number of units each month, which allows them to better allocate resources, such as labor and raw materials. This approach helps minimize idle time and reduces the need for inventory holding costs, resulting in overall cost reduction.
Therefore, the statement that level production schedules have the advantage of reducing overall production costs is True.