In Deciding Whether to Add or Delete a Product,the Salary

question 101

Multiple Choice

In deciding whether to add or delete a product,the salary of the plant manager is an ________.Assume the plant manager supervised the production of several products.

• A) avoidable fixed cost
• B) avoidable variable cost
• C) unavoidable fixed cost
• D) unavoidable variable cost

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Definitions:

Utilization

The extent to which a resource, such as equipment or labor, is used for its intended purpose, often expressed as a percentage.

Efficiency

The ratio of the useful output to the total input in any system, reflecting how well resources are utilized without waste.