A Production Process Characterized by a Short Production Run and Frequent

question 29

Multiple Choice

A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n) :

• A) Just-in-time process.
• B) Lean manufacturing system.
• C) Analytic process.
• D) Intermittent process.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as raw material and labor costs.

Accounting Profit

The total revenue of a business minus the explicit costs and depreciation expenses, reflecting the net income on the financial statements.

Variable Costs

Costs that vary directly with the level of production or the volume of services provided.

Gasoline Costs

The expenses incurred from purchasing gasoline, often a significant variable cost for motorists and businesses reliant on transportation.