Compared with a Service Operation, a Manufacturing Operation's Capacity Is

question 56

Multiple Choice

Compared with a service operation, a manufacturing operation's capacity is which of the following?

• A) Manufacturing capacity is more dependent on time and location.
• B) Manufacturing capacity is subject to more volatile demand fluctuations.
• C) Utilization rates for manufacturing capacity more directly impacts quality.
• D) Demand can be smoothed by inventory policies.
• E) Manufacturing capacity is more capable of reacting to demand fluctuations.

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Definitions:

Comparative Financial Statement

Financial statements that present information for more than one period, facilitating the analysis of trends over time.

Analysis Period

The specific time frame over which financial or operational performance is analyzed and evaluated.

Base Period

A specific time period used as a benchmark or point of reference for comparing financial or economic data over time.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over multiple periods to identify trends.