The Ideal Lot Size for a Lean System Is

question 31

Multiple Choice

The ideal lot size for a lean system is:

• A)Infinite
• B)One
• C)The capacity of the machine
• D)Variable according to the production requirements
• E)None of the above

---

Definitions:

Fixed Cost

Costs that do not change with the level of production or output, remaining constant even as volume changes.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid. Beyond this range, cost behaviors may change.

Per Unit Basis

A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.

Fixed Production Costs

Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.