An Organization Whose Capacity Is on That Portion of the Average

question 93

Multiple Choice

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises:

• A)has a facility that is below optimum operating level and should build a larger facility.
• B)has a facility that is above optimum operating level and should reduce facility size.
• C)is suffering from diseconomies of scale.
• D)has utilization higher than efficiency.
• E)has expected output higher than rated capacity.

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Definitions:

Fairness

The quality of making judgments that are free from discrimination, dishonesty, or injustice.

Statement of Cash Flows

A financial report that consolidates information about all cash received and expended by a business.

Cash Receipts

The collection of money, such as income from sales or assets being liquidated, recorded during an accounting period.

Cash Payments

Money transactions made to settle obligations or purchases.