Which One of the Following Statements About Relationships Between the Five

question 81

Multiple Choice

Which one of the following statements about relationships between the five major process decisions is best?

• A) Increasing volume opens the door for less capital intensity and more outsourcing.
• B) Resource flexibility usually is higher when capital intensity is higher.
• C) Customer involvement usually is higher when capital intensity is higher.
• D) A manufacturing plant that is capital intensive tends to have more opportunity for vertical integration.

---

Definitions:

Cash Collection

The process of gathering all cash received from sales, services, and other sources.

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect from its debtors.

Credit Sales

Transactions where goods or services are provided to a customer with an agreement to receive payment at a later date.

Invoice Price

The amount charged by the seller to the buyer, detailing the cost of the product or service sold.