busi 3308 major test 3

The use of multiple break-even analysis requires you to ______ each product’s contribution by its proportion of sales.

• subtract

• weight

• multiply

• sum

When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is called _______________________.

• cost cushioning

• throughput scale

• safety capacity

• economies of scale

Economies of scale support builiding larger facilities with more capacity.

• true

• false

Economies of scale suggests that some optimal amount of capacity exists where costs are at a minimum

• true

• false

Diseconomies of scalse suggests that some optimal amount of capacity exists where costs are at a minimum

• true

• false

Diseconomies of scalse support building larger facilities with more capacity

• true

• false

Economies of scale is achieved when the average unit COGS decrease as the capacity/volume increases

• true

• false

Diseconomies of scale occurs when the average unit COGS increases as the capacity/volume also increases

• true

• false

The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

• true

• false

Design capacity refers to the maximum output rate that can be achieved under ideal conditions.

• true

• false