Which One of the Following Statements Concerning Capacity Cushions Is

question 119

Multiple Choice

Which one of the following statements concerning capacity cushions is best?

• A) Large-capacity cushions are utilized more often when future demand is level and known.
• B) Small-capacity cushions are used extensively in capital-intensive firms.
• C) Capacity cushions are used primarily in manufacturing organizations, not in service organizations.
• D) Small cushions are used in organizations where the products and services produced often change.

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Definitions:

Good

An item, material, or product that satisfies a want or need; can be tangible (physical) or intangible (like a service).

Perceived Fairness

The subjective judgment by individuals about the fairness or equity of something, often in economic transactions or distributive justice.

Snow Storm

A severe weather condition characterized by heavy snowfall and strong winds, significantly impacting travel and infrastructure.

Demand Curve

A visual depiction that illustrates the link between a product's price and the amount of the product customers are prepared to buy.