Which One of the Following Statements About Capacity Is Best

question 99

Multiple Choice

Which one of the following statements about capacity is best?

• A) Companies with flexible flow processes tend to have small-capacity cushions.
• B) Companies with high capital costs tend to have large-capacity cushions.
• C) Companies that have considerable customization tend to have larger-capacity cushions.
• D) Constant demand rates require larger-capacity cushions.

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Definitions:

Individual Assets

Assets that are identifiable and separate, such as machinery, buildings, or patents, and can be owned and controlled by an entity.

Partnership Liquidates

When a partnership liquidates, it involves the process of dissolving the business, settling debts, distributing remaining assets among partners, and ceasing operations.

Jointly Owned

Owned by two or more parties who share control and rights over the property or asset.

Income Ratio

A financial metric used to measure the proportion of a company's income relative to another financial figure, such as revenue or assets.