Figure 4.1 -A Manager Weighs Three Options for Capacity Cushion as Depicted

question 107

Multiple Choice

Figure 4.1

-A manager weighs three options for capacity cushion as depicted in Figure 4.1. If the dollar amounts expressed in the figure are cash flows, which option is optimal?

• A) large cushion
• B) medium cushion
• C) small cushion
• D) Not enough information is given to select an option.

---

Definitions:

Quantitative Goal

A specific, measurable objective often defined by numerical indicators.

Superordinate Goals

Goals shared and valued by individuals or groups working together, which guide cooperative efforts towards problem-solving or achieving a common objective.

Formal Rules

Explicitly stated regulations or guidelines that govern behavior and operations within an organization or society.

Context Factor

A variable or condition that impacts the environment or outcomes within a specific situation.