Similar Activities Are Grouped Together in Departments or Work Centres

question 41

Multiple Choice

Similar activities are grouped together in departments or work centres according to the function with a ___ layout.

• A) process
• B) fixed-position
• C) hybrid
• D) none of the above

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements, meaning part of the cost varies with the level of output while part remains fixed.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Curvilinear Fashion

Refers to a curve-shaped pattern of growth, progress, or movement in graphs or data analysis.

Variable Costs

Expenses that fluctuate in direct proportion to the amount of production or the volume of sales, including direct labor costs and raw materials.