What Is LTFT and STFT

question 19

Essay

What is LTFT and STFT?

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Definitions:

Raw Materials Inventory

Raw materials inventory refers to the stock of raw materials on hand at any given time that are made available for use in the production process.

Fixed Costs

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

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behaviors remain valid.

Per Unit Basis

A method of calculating financial figures or metrics for each individual unit of production or sale.