Respond to the Statement "Create or Die" from a New

question 54

Essay

Respond to the statement "Create or die" from a new product innovation perspective.

Recognize the necessity of covering all costs and generating profits for long-term business sustainability.

Understand the significance of EBITDA in internal decision-making processes.

Realize the importance of choosing products with higher contribution margins for profitability in the short run.

Understand the differences between absorption costing and variable costing.

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Definitions:

Process-oriented Layout

A way of arranging equipment and workstations in a workspace where similar processes are grouped together, aimed at optimizing efficiency in production or service operations.

Material Flow

The movement, storage, control, and protection of materials, goods, and products throughout the process of manufacturing, warehousing, distribution, consumption, and disposal.

Minimize Distance

The objective to reduce the total length or travel time between points, often in logistics, routing, or layout planning.

Material Handling Costs

Expenses associated with the moving, storing, and controlling materials and products.