When Demand Is Variable,capacity Is Usually Chosen Above the Average

question 26

Multiple Choice

When demand is variable,capacity is usually chosen above the average (forecast) demand.The excess of capacity over the average demand is called capacity cushion or _______.

• A)Capacity excess
• B)Marginal capacity
• C)Design capacity
• D)Safety capacity
• E)Effective capacity

---

Definitions:

Insolvency Proceedings

Legal processes initiated when an individual or company is unable to repay their debts, leading to asset liquidation or reorganization plans.

Chapter 15

A section of the U.S. Bankruptcy Code dealing with international bankruptcy, facilitating cooperation between U.S. courts and parties and their foreign counterparts.

Foreign Debtors

Individuals or entities located outside a country's borders that owe money to creditors within that country.

Insolvent

A financial condition where liabilities exceed assets, rendering an entity incapable of meeting its financial obligations.