Which of These Would Be an Example of a Fixed

question 4

Multiple Choice

Which of these would be an example of a fixed cost for a company that makes carbon monoxide monitoring systems for workers to wear in hazardous areas?

• A) the lithium batteries that are used in each monitor
• B) the chest harness used to wear the monitor
• C) the insurance for the company's factory
• D) the free training videos that are sent to each new customer
• E) the stainless-steel, water-resistant cases in which the monitors are stored

Understand the application and importance of the 5Ss in Lean production.

Comprehend the significance of JIT in reducing in-transit inventory and the role of supplier location.

Recognize the concerns of suppliers when entering JIT partnerships.

Know the influence of JIT systems on production layout and inventory management.

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Definitions:

Economy's Rate of Growth

The steady increase in the gross domestic product (GDP) or gross national product (GNP) of an economy over time, indicating economic expansion.

Output per Worker

A measure of labor productivity calculated by dividing total output by the total number of workers.

Marginal Revenue Product

Marginal Revenue Product is the additional revenue generated from using one more unit of a resource or factor of production, holding other factors constant.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and it has little to no power to set prices for its products or services.