Which of the Following Would Tend to Reduce Effective Capacity

question 157

Multiple Choice

Which of the following would tend to reduce effective capacity?

• A)suppliers that provide more reliable delivery performance
• B)reduced changeover times
• C)employees that are fully trained
• D)improved production quality
• E)greater variety in the product line

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Definitions:

Default

The failure to meet the legal obligations or conditions of a loan, such as not making payments on time.

Credit Policy

Refers to a set of guidelines that a company uses to determine how much credit to extend to customers.

Credit Analysis

The process of evaluating an applicant's loan request or a corporation's debt issue in order to determine the likelihood of the borrower defaulting on their financial obligations.

Collection Policy

A collection policy outlines the procedures and guidelines a company follows to manage and recover overdue accounts receivable from customers.