For Each of the Following Types of Business,indicate Why the Manager

question 100

Essay

For each of the following types of business,indicate why the manager needs to know the unit cost information.
$$\begin{array} { | l | l | } \hline \text { Managers of a } & \text { Need to know the cost to } \\\hline \text { Bakery } & \\\hline \text { Computer } & \\\text { manufacturer } & \\\hline \text { Bank } & \\\hline \text { Seamstress } & \\\hline\end{array}$$

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead to products.

Theory of Constraints

A management paradigm that focuses on identifying and addressing the most significant limiting factor (constraint) that hinders achieving a goal, and systematically improving that constraint until it is no longer the limiting factor.

Contribution Margin

Contribution margin is the amount by which a product's sales price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Bottleneck Process

A bottleneck process is a stage in production that reduces the efficiency of the operation due to limited capacity, slowing down the overall process flow and impacting productivity.