Being Able to Keep Costs Low While Changing the Volume

question 106

Multiple Choice

Being able to keep costs low while changing the volume of production is an example of

• A) Simplicity
• B) Flexibility
• C) Visibility
• D) Continuous improvement
• E) Total quality management

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Definitions:

Net 30 Credit Policy

A credit term that allows a customer 30 days to pay the invoice in full from the invoice date.

Monthly Interest Rate

The percentage of interest that is charged or earned on an amount of money over a month.

Variable Cost

Expenses that change in proportion to the amount of goods or services produced.

Net Present Value

An investment's difference between the present value of cash inflows and the present value of cash outflows over time.