A Company Has High Winter Demand and Low Summer Demand

question 106

Multiple Choice

A company has high winter demand and low summer demand for its services. The cost of the unused summer capacity should be allocated:

• A) to an account called Idle Capacity.
• B) evenly to all customers.
• C) only to the winter customers.
• D) only to the summer customers.

---

Definitions:

Economic Factors

Variables or elements that affect the financial performance and decision-making process within the economy or a specific sector, including inflation, interest rates, and unemployment.

Environmental Scanning

The process of collecting, analyzing, and using information about trends, events, and relationships within an organization's internal and external environment.

General Conditions

The overarching terms, situations, or factors that apply broadly across different contexts, often framing the environment in which specific actions or activities occur.

National Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment, measured across a country.