Which One of the Following Statements About Aggregate Planning Is

question 20

Multiple Choice

Which one of the following statements about aggregate planning is best?

• A) When a firm wants to emphasize stability in its workforce, it should adopt a level production planning strategy.
• B) A make- to- stock production plan that wants to emphasize plant utilization should adopt a chase production strategy.
• C) When a firm wants to minimize its inventory investment, it should use a level production planning strategy.
• D) A make- to- stock production plan that wants to minimize changes in production rates should adopt a chase production planning strategy.

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Definitions:

Consolidate

To combine assets, liabilities, and other financial items of two or more entities into one.

Financial Data

Quantitative information pertaining to financial transactions, including earnings, expenditures, assets, liabilities, and equity.

Controlling Interest

Ownership interest in a business entity that gives the holder the power to direct or influence the direction of management and policies.

Consolidation Worksheet

An instrument utilized for creating combined financial reports that merges the finances of a parent entity with those of its subsidiary companies.