Is Lower Capital Costs Per Unit of Capacity an Advantage

question 22

Multiple Choice

Is lower capital costs per unit of capacity an advantage of large-scale technology or small-scale technology.

• A) Large-scale technology
• B) Small-scale technology

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Definitions:

Grinding Machine Time

The duration a grinding machine is actually operating to remove material from a workpiece, considered a cost driver in manufacturing processes.

Existing Grinding Capacity

The current maximum volume or quantity of material that can be ground or processed in a facility within a given timeframe.

Variable Cost

Expenses that change in proportion to the volume of goods or services produced.

Intermediate Calculations

Calculations that occur in the middle of a problem-solving process, often needed to arrive at a final solution.