Given the Position of CD-ROM's in the Decline Stage of Its

question 49

Multiple Choice

Given the position of CD-ROM's in the decline stage of its life cycle, which of the following OM strategies or issues should the makers of CD-ROM's be least concerned with at the current time?

• A) forecasting
• B) cost minimization
• C) over capacity in the industry
• D) pruning lines
• E) reduce capacity

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Definitions:

Flexible Budget

A financial planning tool that dynamically adjusts to volume or activity level changes.

Spending Variance

The variance between the real expenditure and the anticipated budget over a specific timeframe.

Other Expenses

Costs not directly related to the production of goods or services, such as administrative and marketing expenses.

Fixed Cost

Costs that do not change with the level of production or sales volume, remaining constant regardless of business activities.