Which of the Following Statements About Aggregate Planning Is False

question 84

Multiple Choice

Which of the following statements about aggregate planning is false?

• A) Hiring, layoffs, overtime, and subcontracting are methods of manipulating capacity.
• B) Aggregate planning produces a plan detailing which products are made and in what quantities.
• C) Yield management is a way of manipulating product or service demand.
• D) Aggregate planning uses the adjustable part of capacity to meet production requirements.
• E) The transportation method is an optimizing technique for aggregate planning.

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Definitions:

Merchandise

Items or products that a company buys to sell to its customers in the course of its business.

Journal Entries

The foundational records in accounting that detail all financial transactions, using debits and credits to maintain balance.

Cash Flow Hedge

A type of hedge that is used to manage exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a forecasted transaction.

Forward Contract

A tailor-made deal between two participants to transfer an asset at a fixed price on a specified future date.