The Longest Processing Time (LPT)rule Tends to Complete Larger Jobs

question 32

True/False

The longest processing time (LPT)rule tends to complete larger jobs in-house when subcontracting is anticipated.

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Definitions:

Variable Labor Input

Labor whose usage level can be changed in the short term to match the level of output production.

Lowest Cost Level

The point at which a business can produce its goods or services at the minimum possible cost.

Average Total

The sum of all the costs of production (fixed and variable) divided by the total quantity produced; often referred to as average total cost.

Marginal Cost Curve

A graphical representation showing how the marginal cost varies with the quantity of output produced, typically U-shaped due to economies and diseconomies of scale.