Question

Match each of the definitions that follow with the term it defines.

Engineering change order Total cost concept
Variable cost concept Normal selling price
Setup A document that initiates a product or process change
Includes manufacturing costs plus selling and administrative expenses Changing tooling when preparing for a new product
Target selling price to be achieved in the long term Variable manufacturing costs plus variable selling and administrative costs are included in cost per unit

Answer 1

Answer: The answers are:

1) Engieering change order is a document that initiates a product or process change.

2) Total cost concept Includes manufacturing costs plus selling and administrative expenses.

3) Variable cost concept = Variable manufacturing costs plus variable selling and administrative costs are included in cost per unit .

4) Normal selling price is Target selling price to be achieved in the long term .

5) Setup = Changing tooling when preparing for a new product.