Management Is Interested in Utilizing the Full Capacity of Production

question 42

Multiple Choice

Management is interested in utilizing the full capacity of production facilities because it

• A)spreads variable costs over a greater number of units, thereby reducing the variable cost per unit.
• B)spreads fixed costs over a greater number of units, thereby reducing the fixed cost per unit.
• C)reduces total variable costs.
• D)reduces total fixed costs.

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Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance composed of hydrogen and oxygen, essential for most forms of life on Earth.

Blood pH

A measure of the acidity or alkalinity of the blood, maintaining a tightly regulated level that is essential for normal bodily functions, usually around 7.35 to 7.45.