The Concept of Continuous Process Improvement (Instead of Reengineering a Radical

question 11

True/False

The concept of continuous process improvement (instead of reengineering a radical change) never applies to cycle-time reduction.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials.

Fixed Costs

Expenditures that do not change over a short period of time, regardless of the level of production or activity.

Break-even Point

The financial point at which total costs and total sales are equal, resulting in no net loss or gain for the business.

Variable Costs

These are costs that vary directly with the level of production or sales volume.