Owen Is a Factory Manager for Gateway Computers and Is

question 22

Multiple Choice

Owen is a factory manager for Gateway Computers and is conducting a visual inspection of component hardware and comparing against established quality standards.Owen is measuring _____.

• A)production planning
• B)critical path
• C)quality control
• D)benchmarking

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Fixed Costs

Costs that do not change with the level of output or sales over a certain period, such as rent or salaries.

Contribution Margin

The contribution margin represents the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.

Variable Cost

Business expenditures that adjust based on the activity level of the enterprise.