Describe the Use of Group Technology

question 20

Essay

Describe the use of group technology.

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Definitions:

Selling and Administrative Expenses

These are indirect costs that are not directly tied to the production of goods or services, including sales personnel salaries, advertising, and office rent.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Administrative Costs

Expenses related to the general administration of a business, including salaries of executives, office supplies, and legal and accounting services.

Indirect Costs

Costs that cannot be directly linked to the production or sale of specific goods or services, like utilities or administrative salaries.