Which One of the Following Statements Concerning Capacity Alternatives Is

question 134

Multiple Choice

Which one of the following statements concerning capacity alternatives is best?

• A) Subcontracting can help overcome short- term capacity shortages by offloading work on other producers.
• B) Using overtime capacity usually improves worker productivity.
• C) Adjusting workforce levels is preferred when the workforce is skilled and the labor pool is small.
• D) Creating anticipation inventory increases customization, and is particularly favored in the service industry.

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Definitions:

Weekly Wage

The total amount of money paid to an employee on a weekly basis for services rendered.

Accounts Receivable

Money that a business is due to receive from its customers for products or services already supplied but not paid for.

Salaries Expense

The overall cost incurred by a company to pay its employees, typically recorded as an operational expense.

Service Revenue

Income earned by a company through the provision of services to customers.