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Maria is asked to create and tell a story about how a lost dog was able to find its home. She talks and talks about the dog, and about its home, but is never able to figure out how to end the story or what would be required to make the story complete. In terms of her control processes, her problem in finishing her work would be described as a failure of:
Fixed Expenses
Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.
Opportunity Cost
The loss of potential gain from other alternatives when a particular alternative is chosen.
Variable Manufacturing Costs
Costs in manufacturing that vary with the level of production output, including direct labor, materials, and utilities.
Direct Labor
The labor costs directly associated with the manufacture of products, typically wages for workers who physically produce the goods.
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