Which One of the Following Factors Usually Motivates a Smaller

question 85

Multiple Choice

Which one of the following factors usually motivates a smaller capacity cushion?

• A) unevenly distributed demands
• B) high capital intensity
• C) high penalty costs for overtime usage
• D) requests for quick customer services

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Definitions:

Commodity Prices

The market prices for raw materials or primary agricultural products that are traded on exchanges.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Interest Rates

The cost of borrowing money or the return earned on an investment, usually expressed as a percentage.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, purchasing power is falling.