Final answer:
A flexible manufacturing system is a computer-controlled process that produces a variety of products in flexible quantities, substituting labor with technology for cost-effectiveness.
Step-by-step explanation:
A flexible manufacturing system (FMS) is best described by option B: a computer-controlled process that is used to produce a variety of products in moderate, flexible quantities with minimal human intervention. This system enables companies to be more responsive to changes in market demands and to operate with increased efficiency as it provides flexibility in the manufacturing process. This flexibility is achieved through the use of advanced technology, including robots and computerized control systems, that allows the production line to be quickly reconfigured for different tasks. Substituting labor with physical capital, such as automated systems, can lead to lower costs and higher profits if total revenues remain unchanged. It is essential in today's competitive landscape for firms to adopt low-cost production methods, lest they lose out to competitors who can produce more cost-effectively.