If Time and Money Permit, Which Strategy for Dealing with Large

question 46

Multiple Choice

If time and money permit, which strategy for dealing with large crowds of guests is preferable?

• A) close the doors
• B) add capacity
• C) manage demand
• D) allow the line to form and divert customers

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as rent, salaries, and utilities.

Direct Labor

Labor that is directly involved in the creation or production of goods, distinguishable from indirect labor such as administrative work.

Raw Material

The basic material from which a product is made, often used in manufacturing and production processes.