The Cost Advantages That Manufacturers Get from High-Volume Production Are

question 30

Multiple Choice

The cost advantages that manufacturers get from high-volume production are known as

• A) economies of scale.
• B) economic development.
• C) spatial diffusion.
• D) spatial economies.
• E) agglomeration economies.

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Definitions:

Average Inventory

The mean value of inventory held over a certain period of time, calculated to help businesses understand inventory turnover.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Indirect Labor

Labor costs associated with the production process that cannot be directly linked to specific units or products, such as maintenance personnel salaries.