Most Service Organizations Use

question 75

Multiple Choice

Most service organizations use

• A)product layouts.
• B)fixed-position layouts.
• C)process layouts.
• D)cellular layouts.

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the amount of goods or services produced.

Demand Curve

A graph showing the relationship between the quantity of a good that consumers are willing and able to purchase and the price of the good.

Marginal Cost

The hike in cost incurred by generating an additional unit of a good or service.

Profit-Maximizing

This is the process by which a firm decides on the price and output level that returns the maximum profit.