When a Company Does Not Have Sufficient Capacity to Fill

question 21

Multiple Choice

When a company does not have sufficient capacity to fill an order for less than the current selling price, what additional factor must be taken into consideration?

• A)The decision process is the same whether there is sufficient capacity or not.
• B)How will the lack of capacity affect the quality of the product.
• C)Can resources be transferred from producing product to sell at the current price to producing product at the special price?
• D)Opportunity costs

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Definitions:

Rayonnant Style

An architectural style of Gothic architecture, noted for its elaborate decorative elements and emphasis on the play of light, prevalent in the 13th and 14th centuries.

Louis IX

Also known as Saint Louis, he was King of France from 1226 until his death in 1270 and is remembered for his charitable acts and the justice of his rule.

Second Crusade

The Crusade that occurred between 1147 and 1149, a failed attempt by European leaders to reconquer the Crusader states in the Middle East from Islamic rule.

Scissors Arches

A pair of arches resembling scissors, comprising an inverted arch above a traditional arch; used in the nave of Wells Cathedral in the 14th century.