The Main Disadvantage(s)of Trial-And-Error Techniques Used for Aggregate Operations Planning

question 47

Multiple Choice

The main disadvantage(s) of trial-and-error techniques used for aggregate operations planning is (are) :

• A)that they are expensive to do.
• B)that they may not result in the best plan.
• C)that they take a long time to do.
• D)that they require the use of a computer.

---

Definitions:

Compensating Balance

A portion of a loan that banks require borrowers to leave in their checking accounts. Effectively increases the bank’s yield. A minimum balance required to compensate banks for their services.

Checking Account

A bank account that allows depositors to write checks against deposited funds, making it easy to access and manage money for daily transactions.

Loan Cost

The total expense that a borrower incurs to take out a loan, including interest rates, fees, and any other charges.

Short-Term Loans

Short-term loans are financial obligations due for repayment within a year, often utilized for immediate cash flow needs.