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:

Source Document

An original record, such as an invoice or receipt, that evidences a business transaction.

Indirect Materials

Indirect materials are those materials used in the production process but are not directly traceable to specific products, such as lubricants for machinery.

Work in Process Inventory

Goods that are in the production process but have not yet been completed; represents one of the stages in manufacturing inventory.

Journal Entry

A recorded transaction in the accounting books of a business, which is used to document financial activities and maintain the integrity of financial statements.