A Difference Between Project and Continuous Flow Categories of Process

question 51

Multiple Choice

A difference between project and continuous flow categories of process flow structures is which of the following?

• A) The size and bulk of the product
• B) Discrete parts moving from workstation to workstation
• C) Degree of equipment specialization
• D) Being a "virtual factory"
• E) Profit per unit

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Definitions:

Constant Costs

Costs that do not change with the level of output or production, remaining stable irrespective of business activity levels.

Economic Profit

The profit or loss that a company makes, calculated by subtracting both the explicit and implicit costs from total revenues.

MR Curve

The Marginal Revenue curve represents the change in total revenue that results from selling one additional unit of a good or service.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a certain action.