When the Number of Units Manufactured Increases,the Most Significant Change

question 29

Multiple Choice

When the number of units manufactured increases,the most significant change in unit cost will be reflected as a(n)

• A)increase in the fixed element.
• B)decrease in the variable element.
• C)increase in the mixed element.
• D)decrease in the fixed element.

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Definitions:

Record Accuracy

The degree to which records are complete, correct, and reliable.

MRP

Material Requirements Planning, a system for inventory and production planning that ensures materials and products are available for production and delivery to customers.

Successful MRP

Refers to the effective implementation and management of Material Requirements Planning, a system for efficiently managing the manufacturing process through inventory control and production scheduling.

Bill Of Material

An exhaustive inventory of raw ingredients, parts, and assemblies needed for building, producing, or fixing a product or service.