Examlex
Which of the following statements is not true:
Bottlenecks
Refer to points of congestion in a production system that significantly slow down the overall process.
Variable Cost Concept
A concept used in applying the cost-plus approach to product pricing in which only the variable costs are included in the cost amount to which the markup is added.
Fixed Manufacturing Costs
Expenses related to the production process that do not vary with the volume of production, such as salaries of supervisors and rent of the factory.
Markup
The amount added to the cost of goods to cover expenses and generate profit.
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