The Assumption of Stability of Demand Is Important for Justifying

question 15

Multiple Choice

The assumption of stability of demand is important for justifying which of the following layout types?

• A) fixed-position layout
• B) product-oriented layout
• C) process-oriented layout
• D) all of the above
• E) none of the above

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Definitions:

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production or sales, including items like labor and materials.

Machine Hour

A measure of production time, where costs are attributed based on the number of hours a machine is operated.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of output but also involving a constant component.

Press Setup

The preparation and adjustment of printing presses before a printing run.