A Widespread Shift to Mass Customization Has Not Occurred Because

question 54

Multiple Choice

A widespread shift to mass customization has not occurred because firms found that

• A) production costs were still high.
• B) the Internet offered a low-cost way to get a lot of orders.
• C) mass production is always better.
• D) economies of scale provides a better alternative.
• E) technology introduces a new set of problems.

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Definitions:

Total Cost Transferred

The aggregate cost of goods or services moved from one stage of production to another, or from production to finished goods, within a given period.

Conversion Costs

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Cost Per Equivalent Unit

A measure in process costing that calculates the cost assigned to a unit, considering the stage of completion.

Processing Department

A division within a manufacturing facility where a specific type of process or a stage of production is carried out.