The __________ Is Used by the Lean Control System to Compare

question 23

Short Answer

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

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Definitions:

Average Variable Costs

A new definition for the cost incurred from variable resources divided by the total output, illustrating the expense associated with producing each additional unit.

Total Fixed Costs

The total amount of expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Total Variable Cost

The sum of all costs that vary with the level of production, including materials and labor directly tied to the production volume.

Total Cost

The sum of all costs associated with producing a specific amount of a good or service, including both fixed and variable costs.