Well I did not want to point these things out but ok if you insist.McDuff wrote:Mate. Look, not to be too much of a dick about this, but you can't just say "wurgh general class of costs!" and then pretend that I didn't just list the things that actually form the fixed costs of a manufacturing process, and why they don't apply in LT.
What are the specific things you think form the fixed costs of the system?
What is the fixed cost system that means I cannot tell my infinitely variable manufacturing process to make small quantities of a variable product line and then restock based on what sells?
First of all , the running cost is not a Fixed Cost at all, it would not be a Fixed Cost even if you had one in the LT universe.. This is how I established that you clearly have no idea what a Fixed Cost is. A running cost is in fact the opposite of a Fixed Cost that is to say a Variable Cost. Again such a mistake could be made only by one who had no idea what a fixed cost is.
Second, a retooling cost is not a fixed cost either, it is an indirect cost. Or it might not be a cost at all if you have a standing maintenance department who gets paid regardless of the amount of work done in their work program. But again these are just minor details.
Look Up Fixed Costs! You have no clue what they are thus my previous explanations on the viability of mass productions can't make any sense to you. And they won't until you know what a Fixed Cost is.
I apologies to any moderators reading this I understand we are going a bit off topic with the economy lessons