When Management Has Excess Capacity Available to It in the Short

question 16

Multiple Choice

When management has excess capacity available to it in the short run, which of the following would be the best path to follow?

• A)Consider ways to reduce its fixed costs.
• B)Consider accepting special orders.
• C)Consider outsourcing certain products.
• D)Consider mixing its product offerings in a new way.

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Definitions:

Digital Downloads

The distribution of digital content such as music, movies, and software via the internet, without the use of physical media.

Online Retail Sales

The process of purchasing goods or services over the Internet, directly from retailers.

Expired Products

are items that have surpassed their shelf life or expiration date and are no longer considered safe or effective to use.

Consumption Expenditures

The total amount spent by households on goods and services for their own use, not including savings or investments.