Examlex
Describe the purpose of the five basic control techniques.
Variable Cost
Variable cost pertains to a cost that changes in proportion with the level of activity or volume of production in a company.
Average Fixed Cost
The fixed costs of production divided by the quantity of output produced, which decreases as production increases.
Law Of Diminishing Returns
An economic principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.
Economies Of Scale
The situation when a firm’s average total cost of producing a product decreases in the long run as the firm increases the size of its plant (and, hence, its output).
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