Identify and Describe the Goal/purpose of the Three Types of Manufacturing

question 18

Essay

Identify and describe the goal/purpose of the three types of manufacturing layouts.

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Definitions:

Mixed Costs

Expenses that have both a fixed and variable component, changing in total with the level of activity but also including a constant element.

Fixed Costs

Fixed costs are expenses that remain constant for a company regardless of how much it produces or sells, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that fluctuate in direct proportion to the amount of production or sales figures.