How Would a Fixed Ratio Schedule and a Variable Ratio

question 158

Essay

How would a fixed ratio schedule and a variable ratio schedule be used in a workplace?

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or output in a manufacturing environment.

Variable Distribution Costs

Expenses that change in proportion to how a product is stored, handled, and delivered.