Technology That Is Characterized by High Initial Costs and Low

question 79

Multiple Choice

Technology that is characterized by high initial costs and low operating costs is termed as _____.

• A) a quality circle
• B) capital-intensive
• C) an industrial installation
• D) labor-intensive
• E) a process layout

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Definitions:

Mixed Cost

Mixed cost includes both fixed and variable components, meaning part of the cost varies with the level of activity while the other part remains constant.

Overhead Costs

Expenses related to the operation of a business that are not directly associated with the production of goods or services, such as rent, utilities, and administrative salaries.

Machine Setups

The process of preparing and adjusting machines for a specific production run.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as salaries of permanent staff and rent for factory space.