Which One of the Following Statements About Capacity Is Best

question 79

Multiple Choice

Which one of the following statements about capacity is best?

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

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Definitions:

Qualitative Assessment

An evaluation process that focuses on non-quantifiable factors such as quality of management or brand reputation.

Quantitative Assessment

The evaluation or measurement of something based on quantity or numbers rather than subjective characteristics.

Reporting Unit

A segment or component of a company for which financial information is available and reviewed regularly by the segment's or the entire company's management.

Consolidated Balance Sheet

A consolidated balance sheet combines the financial statements of a parent company and its subsidiaries into a single document, showing the total assets, liabilities, and equity of the consolidated entity.