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.

---

Definitions:

Warehouse Companies

Businesses that specialize in storing goods, products, or commodities in large buildings before they are distributed for sale or further production.

Interests in Land

Legal rights or claims to the use, control, and benefits of a specific piece of land.

Rights to Possess

This refers to the legal right of an individual or entity to have control over a property or asset.

Tenant in Common

A form of joint ownership of property where each owner has an undivided interest, and there is no right of survivorship.