Question

High fixed costs and low variable costs are typical of which approach?

A) product
B) process
C) mass customization
D) repetitive
E) A and C

Answer 1

E. A and C

Both of these approaches are geared toward products that are made-to-order which involves higher initial production costs.

Answer 2

The answer is option E) A and C

Step-by-step explanation:

When the company focuses more on quality of the product and compares its product with the product of its competitor's in the market. The High Fixed costs are incurred to make a different and unique product. As a result of effort to make a quality product, the mass customization also occurs in processes, machinery, and hygiene environment is established. This all entails in high fixed costs and low variable costs.