A Support Process Performs Necessary, Value-Added Activities of an Organization

question 33

True/False

A support process performs necessary, value-added activities of an organization.

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Definitions:

Learning-by-doing

An economic concept that suggests productivity and efficiency improve through practice and the accumulation of experience.

Spreading the Overhead

The practice of distributing fixed costs over a variety of products, projects, or business units to ensure efficiency and reduce the overall cost per unit.

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Diseconomies of Scale

This occurs when a company grows so large that the costs per unit increase.