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The first-come,first-served (FCFS)sequencing rule should be only used when operating at high levels of capacity.
Variable Costs
Costs that vary directly with the level of production or sales volume, such as raw materials and labor.
Fixed Costs
Expenses that do not change with the level of production or business activity, such as rent or salaries.
Idle Capacity
Unused production capacity in a business, where the facilities, equipment, or workforce are not being fully utilized.
Underutilized Labor
A situation where employees are not working at their full capacity or skill level, leading to inefficiency and increased labor costs.
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