Which One of the Following Statements About Capacity Cushion Is

question 99

Multiple Choice

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

• A) Return of investment is about the same for capital- intensive firms, regardless of their capacity cushions.
• B) Large capacity cushions are more likely to be utilized when future demand is known.
• C) Small cushions are used when the product mix often changes.
• D) The best- sized cushion varies by industry and firm.