Which Basic Production Planning Strategy Will Build Inventory and Avoid

question 20

Multiple Choice

Which basic production planning strategy will build inventory and avoid the costs of excess capacity?

• A) demand matching (chase)
• B) production leveling
• C) subcontracting
• D) all the above
• E) none of the above

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Definitions:

Net Income

The total revenue minus total expenses of a company, representing the profit or loss over a specified period.

Total Common Equity

The sum of a company's shareholders' equity, excluding preferred shares, represented by common stock, retained earnings, and other accumulated comprehensive income.

Cash Flow Per Share

A financial metric that represents the amount of cash generated by a company, per share, over a specific period.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.