​Which of the Following Would Not Be Considered a Preshaped

question 13

Multiple Choice

​Which of the following would not be considered a preshaped part for an assembly?

• A) ​machined
• B) ​bent
• C) ​bar stock
• D) ​precut

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Definitions:

Break-Even Level

The point at which total revenues equal total expenses, and the business neither makes a profit nor incurs a loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

A cost that changes in proportion to the level of production or business activity.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs after variable costs have been paid.