Which One of the Following Statements About Capacity Cushion Is

question 77

Multiple Choice

Which one of the following statements about capacity cushion is best?

• A) A larger cushion is required when a firm uses low cost as a competitive priority.
• B) A larger cushion increases equipment utilization when capital intensity is high.
• C) Businesses find large cushions appropriate when demand varies.
• D) A larger cushion increases manufacturing lead time.

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Definitions:

Burden of Proof

The obligation to prove allegations presented in a legal dispute, typically resting on the party who initiates the claim.

Negligent

Failing to take proper care in doing something, resulting in damage or harm to another.

Foreign Objects

Items or substances found in a place where they do not belong, which can cause harm or interference with normal operations or health.

Scalpel

A small and extremely sharp bladed instrument used for surgery, dissection, or art.