Which One of the Following Statements Concerning Capacity Cushions Is

question 103

Multiple Choice

Which one of the following statements concerning capacity cushions is best?

• A) Large capacity cushions are used more often when future demand is level and known.
• B) Small capacity cushions are preferred in capital intensive firms.
• C) Capacity cushions are used primarily in manufacturing organizations, not in service organizations.
• D) Small cushions are used in organizations where the products and services produced often change.

---

Definitions:

Modified AGI

Adjusted Gross Income with certain deductions added back in, used for determining eligibility for specific tax deductions and credits.

Single Taxpayers

Individuals who file their tax returns under the status of being unmarried without dependents.

Lifetime Learning Credit

A tax credit that helps pay for undergraduate, graduate, and professional degree courses, including courses to acquire or improve job skills.

Degree Program

A course of study at a college or university that leads to the attainment of a specific academic degree, such as a bachelor's or master's degree.