When the Services Dominate the Value of the Product, the Production

question 84

Short Answer

When the services dominate the value of the product, the production system is commonly called a __________.

---

Definitions:

Variable Component

Denotes a part of a cost or expense that varies directly with the level of activity or output.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing with the level of production or sales but not in direct proportion.

Electrical Cost

The expense associated with the consumption of electrical energy or the cost related to electrical work in construction or maintenance.

Production Volume

The total quantity of goods or products manufactured within a specific period.