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:

Production

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (output).

Consumption

The act of using up a resource or goods, often related to economic spending or food intake.

Physical And Mental Talents

Innate or acquired abilities in bodily and cognitive functions that individuals possess.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay, often leading to novel solutions or improvements.