A Factory Is Operating at Less Than 100% Capacity

question 15

Multiple Choice

A factory is operating at less than 100% capacity.Potential additional business will not use up the remainder of the plant capacity.Given the following list of costs, which one should be ignored in a decision to produce additional units of product?

• A)variable selling expenses
• B)fixed factory overhead
• C)direct labour
• D)contribution margin of additional units

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Definitions:

Messages

are units of communication that convey information, intentions, or requests from the sender to the receiver.

Transmitted Data

Information that has been sent from one place to another through a digital or analog method.

Nonverbal Symbols

Forms of communication without the use of words, such as gestures, facial expressions, and body language, that convey meanings or messages.

Media Richness

The degree to which a communication medium is capable of effectively conveying complex information in a clear and comprehensible manner.