A Source of Demand Volatility for Agricultural Products Is

question 226

Multiple Choice

A source of demand volatility for agricultural products is

• A)the strict application of "100 percent parity" by the Department of Agriculture.
• B)a sharp fluctuation in foreign demand for U.S. farm products.
• C)the large grain harvest which resulted from excellent weather.
• D)the increasing mechanization of farms.

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Definitions:

Milling Machine Minutes

A measurement of manufacturing time that quantifies the duration a milling machine is used in the production process.

Monthly Demand

The total quantity of a product or service that consumers want to purchase within a month.

Variable Manuf. Cost

Costs that fluctuate with the production volume, including direct materials, direct labor, and variable manufacturing overhead.

Production Constraint

A limitation or bottleneck in the manufacturing process that reduces the efficiency or capacity of production.