Costs That Remain Constant Per Unit Regardless of the Level

question 20

Multiple Choice

Costs that remain constant per unit regardless of the level of output are known as:

• A) variable costs.
• B) mixed costs.
• C) direct costs.
• D) fixed costs.

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Definitions:

Fill Orders

The process of completing customer requests for goods or services in accordance with purchase agreements or specifications.

Throughput Time

Throughput Time, also known as cycle time, is the total time taken from the beginning to the end of a production process, including processing, inspection, and transportation times.

Fill Orders

The process of completing customer orders by preparing and delivering the requested products or services.

Manufacturing Cycle Efficiency

The ratio of value-added time to total throughput time in a manufacturing process, measuring the efficiency of production.