Of the Three Approaches to Capacity Expansion, the Approach That

question 99

Multiple Choice

Of the three approaches to capacity expansion, the approach that "straddles" demand

• A) uses incremental expansion
• B) uses one-step expansion
• C) at some times leads demand, and at other times lags
• D) works best when demand is not growing but is stable
• E) Choices A and C are both correct.

Recognize the benefits and applicability of multiple production department factory overhead rates.

Calculate factory overhead rates and understand their implications on product costing.

Identify the consequences of using a plantwide factory overhead rate when there are significant differences in activities causing overhead costs across departments.

Distinguish between plantwide and multiple production department factory overhead rates in terms of accuracy and application.

---

Definitions:

Information Technology

The use of computers and software to manage information, particularly in terms of storage, retrieval, transmission, and manipulation of data.

Glass-Ceiling Effect

The glass-ceiling effect is a barrier that prevents certain groups, often women and minorities, from advancing beyond a certain level in a hierarchy.

Career Advancement

The process of moving up in rank or position within a company or profession, often through gaining experience, skills, and achievements.

Ethics

The branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.