Which Choice Below Best Describes the Counterseasonal Demand Option

question 93

Multiple Choice

Which choice below best describes the counterseasonal demand option?

• A) producing such products as lawnmowers and sunglasses during the winter
• B) developing a mix of products that smooths out their demands
• C) lowering prices when demand is slack
• D) using subcontractors only when demand is excessive
• E) the breaking of the aggregate plan into finer levels of detail

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Definitions:

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product, including indirect materials, labor, and other expenses.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activities.