Which of the Following Statements About Aggregate Planning Is true

question 82

Multiple Choice

Which of the following statements about aggregate planning is true?

• A) Advertising/promotion is a way of manipulating product or service supply.
• B) Work station loading and job assignments are examples of aggregate planning.
• C) Overtime/idle time is a way of manipulating product or service demand.
• D) Aggregate planning uses the adjustable part of capacity to meet production requirements.
• E) All of the above are true.

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the entire cost of production by the total quantity produced.

Short Run

A period in which at least one input is fixed, limiting the capacity for a firm or economy to adjust to changes in demand or supply.

Produce

To create, manufacture, or grow goods and commodities, especially in the context of agriculture and manufacturing.

Variable Costs

Costs that change in proportion to the level of production or business activity.