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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