If an Organization Cannot Deliver Goods or Services Quickly Because

question 49

Multiple Choice

If an organization cannot deliver goods or services quickly because of a constraint, managers might relax that constraint to:

• A) Protect customer loyalty
• B) Ensure optimal profitability
• C) Increase the selling price of the product
• D) Find the next bottleneck

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent for the manufacturing facility or salaries of permanent staff.

Common Fixed Expenses

Costs that are shared across different segments or departments of a business and do not vary with the level of production or sales.

On-Site Supervisor

An individual responsible for overseeing and managing workers or operations at a specific physical location.

Corporate Office

The main office or headquarters of a corporation where key administrative and executive activities are conducted.