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The Principle of _____ Is to Design,develop and Produce the Minimum

question 17

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The principle of _____ is to design,develop and produce the minimum number of parts or operations that can be combined in the maximum number of ways to offer the greatest number of products or services.


Definitions:

Direct Proportion

A relationship between two quantities where they increase or decrease at the same rate.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behaviors hold true.

Total Fixed Costs

Financial obligations that do not fluctuate with the amount of goods made or sold, for instance, rent, salaries, and insurance coverage.

Unit Fixed Costs

Unit Fixed Costs are the costs that do not change with the volume of production and are allocated per unit based on the total production quantity.

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