High fixed costs and low variable costs are typical of which approach? repetitive process quality product

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High fixed costs and low variable costs are typical of which approach? repetitive process quality product

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## Step 1: Firstly, we need to understand the nature of each approach. ## Step 2: Repetitive approach refers to the production method where high volume of similar items are produced repetitively. Variable cost can also be high in this approach due to repetitive production requiring lots of raw materials and other transaction costs. ## Step 3: Process approach is characterized by tasks conducted especially for mass producing similar items. Fixed costs are generally higher in a process approach as substantial initial investment is required. Variable cost also tends to less in this approach because same item is produced in mass and therefore, process efficiency brings the cost per item down as quantity goes up. ## Step 4: Quality approach generally refers to maintaining high standards in production which can require both high fixed costs and high variable costs. ## Step 5: Product approach tends to high variable cost as the products are usually heterogeneous or unique in nature requiring high cost of raw materials. ## Step 6: Therefore, the process approach fits the description of `High fixed costs and low variable costs`.

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High fixed costs and low variable costs are typical of which approach? repetitive process quality product

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