When Lean Systems Are Implemented

question 6

Multiple Choice

When lean systems are implemented:

• A)Variable costs tend to increase,while fixed costs tend to decrease.
• B)Fixed costs tend to increase,while variable costs tend to decrease.
• C)Fixed and variable costs both tend to decrease.
• D)Contribution margin tends to decrease.

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Definitions:

Firms

Entities or organizations involved in business activities, whether they be commercial, professional, or industrial.

Employees

Individuals who work for a company or organization and are paid for their labor and expertise.

Horizontal Merger

A merger between two or more companies operating in the same industry at the same stage of production.

Vertical Merger

A business consolidation that occurs between companies that operate within the same supply chain, typically involving a manufacturer merging with a supplier or a distributor.