According to the Text,the Level of Fixed Costs,the Minimum Efficient

question 18

Multiple Choice

According to the text,the level of fixed costs,the minimum efficient scale,and _____ are three characteristics of a manufacturing technology that are particularly interesting to international firms when making manufacturing location decisions.

• A)the flexibility of the technology
• B)multiple locations
• C)the decrease in machine utilization via scheduling
• D)the increase in setup times for complex equipment

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Definitions:

Book Value

The net value of an asset or company calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Accumulated Depreciation

The total amount of depreciation expense that has been charged to a fixed asset since it was in service, reducing its book value.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting the loss of value over time.

Fair Market Value

The price at which an asset would sell in the marketplace, assuming both buyer and seller are knowledgeable, willing, and under no pressure to buy or sell.