Adjusting Available Capacity by Hiring and Firing Workers to Match

question 79

Multiple Choice

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n) ________ strategy.

• A)level production
• B)chase demand
• C)mixed production.
• D)optimal production.

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Definitions:

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction happens.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in the financial statements.

Revaluation Surplus

An increase in the value of an asset that is reflected in the books of accounts, primarily through a revaluation process.

Cash-Basis Expenses

Expenses recorded when cash is actually paid out, under the cash basis of accounting, as opposed to the accrual basis which recognizes expenses when they are incurred.