As Process Selection Moves Up the Diagonal from Project to Continuous

question 38

Multiple Choice

As process selection moves up the diagonal from project to continuous production

• A)demand volume increases.
• B)product variety increases.
• C)capital intensity decreases.
• D)flexibility increases.

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Definitions:

Relevant Range

The range of the activity index over which the company expects to operate during the year.

Total Costs

The aggregate amount of all expenses incurred in the production of goods or services, including fixed and variable costs.

Linear

A mathematical relationship or function that can be graphically represented by a straight line, characterized by consistent changes.

Flexible Budget

A flexible budget designed to adapt in line with changes in the amount of activity or volume.