The Operations Ability to Change Its Level of Output or Activity

question 20

Multiple Choice

The operations ability to change its level of output or activity to produce different quantities or volumes of product and service over time is called:

• A) Product/Service flexibility
• B) Delivery flexibility
• C) Volume flexibility
• D) Mix flexibility

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Definitions:

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred till a later date, typically employed in business-to-business transactions.

Uncollectible Accounts

Receivables that are deemed to be uncollectable from debtors, leading to their recognition as a loss.

Credit Policy

Guidelines that define the credit limits and terms extended by a business to its customers.

Percentage of Receivables Basis

A method for estimating uncollectible accounts by applying a fixed percentage to the total receivables balance.