27 Cards in this Set
| Which of the following is an example of lower production costs brought about by the use of technology? | the use of e-mail to replace slower surface mail |
|---|---|
| Fixed costs plus variable costs | total cost |
| The amount a supplier is willing and able to supply at a certain price | quantity supplied |
How does technology influence the cost of production?
Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices. At lower prices, consumers can purchase more TVs and computers, causing the supply curve to shift to the right.
Which of the following is an example of a good with an inelastic supply?
A shift in price does not drastically impact consumer demand or the overall supply of the good because it is not something people are able or willing to go without. Examples of inelastic goods would be water, gasoline, housing, and food. Elastic goods are usually viewed as luxury items.
Why is technology important in production?
In particular, technology is used to maximise product quality and reduce production costs. Technology was identified as the most important area of manufacturing process decision making, followed by quality assurance and control. Both of these were found to be directly influenced by process technology.
How does better technology affect production?
Technology benefits businesses as it allows them to produce higher quantities, make products more consistent and be more cost-effective. This both reduces costs and improves employee health. Productivity – Using machinery to mechanise or automate parts of the production process leads to an increase in productivity.
How can technology help lower cost of production?
Contractors can lower the cost of production. Companies can outsource minor work to other countries to save even more. It is possible to get the help of off-shore factories to do the manufacturing for you.
How are production costs included in production cost?
In other words, all costs related to the factory are included in the production cost. Production cost = Direct material cost + Direct labor cost + Factory/Manufacturing overheads Direct material cost is the cost incurred to procure raw materials.
What are manufacturing overheads in a manufacturing business?
Manufacturing/Production Overheads. Manufacturing Overheads are the costs incurred in the factory excluding direct material cost & direct labor cost. Such overhead costs cannot be easily allocated directly to a product. That’s the reason they’re also known as Manufacturing indirect expenses.
How does technology help in the manufacturing process?
Productivity monitoring is just as important as the actual manufacturing process. New technologies can help companies check if their production process is lagging. And if there is an area where it needs improvement, it is easier to provide corrections and adjustments.
