Which of the Following Formats Is Much More Appropriate for Low-Volume,flexible

question 80

Multiple Choice

Which of the following formats is much more appropriate for low-volume,flexible manufacturing?

• A)Grid layout
• B)Production line
• C)Free-form layout
• D)Process layout

Understand the concept of break-even point and how to calculate it.

Identify and calculate variable, fixed, and mixed costs.

Apply the high-low method to determine variable costs per unit and fixed costs.

Calculate contribution margin, contribution margin ratio, and its significance.

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Definitions:

Labor Intensive

A process or industry that requires a large amount of labor to produce its goods or services, as opposed to being heavily automated.

Mechanized Work

Work processes that are performed using machinery and equipment to enhance efficiency and productivity.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total base units used by all products, applied throughout the entire manufacturing plant.

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.