Final answer:
Group technology allows for reduced setup times and costs by grouping similar production processes, as seen in production technology 3, which uses less labor and more machinery for lower total costs.
Step-by-step explanation:
The statement that setup time and cost can often be reduced by the use of group technology is True. In business, especially in manufacturing, group technology is a strategy that seeks to improve productivity by grouping similar products or components to take advantage of their similarities in design and production. This leads to reductions in setup and operational costs due to economies of scale and more efficient use of machinery and labor. For instance, production technology 3, which utilizes the least labor and the most machinery, is preferred when machinery costs are lower, leading to a reduction in the total cost of production. Furthermore, group technology allows firms to more easily adapt to changes in labor costs by shifting towards more machine-intensive production methods.