Mega Computer Has a Goal of Reducing Its Manufacturing Costs

question 266

Multiple Choice

Mega Computer has a goal of reducing its manufacturing costs by 15 percent over the next three years. Each of the manufacturing managers has been given tasks to reach this goal. In this case the goal

• A) helps assess performance.
• B) provides direction.
• C) helps allocate resources.
• D) helps make decisions.
• E) defines corporate culture.

---

Definitions:

Microwave Oven

A microwave oven is a kitchen appliance that heats and cooks food by exposing it to microwave radiation in the electromagnetic spectrum.

Total Variable Costs

The sum of all costs that vary with the level of output, such as materials and labor, which increase as production increases.

Microwave Ovens

Electrical kitchen appliances using microwave radiation to quickly cook or heat food and beverages.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, depicting the spread of fixed expenses over units produced.