Acme Fastener and Tool Is Having Major Problems with Demand

question 8

Multiple Choice

Acme Fastener and Tool is having major problems with demand management. The VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels. Of the following, which problem is the firm experiencing?

• A) Focus on tactics
• B) Lack of attention on operational planning
• C) Overemphasis on forecasting
• D) Functional silos

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting how much of the asset's value has been used up during a specific period.

Useful Life

The estimated period over which an asset is expected to be utilizable or productive before it is fully depreciated.

Straight-Line

A method of calculating depreciation or amortization by evenly distributing the cost over an asset's useful life.

Double-Declining-Balance

A method of accelerated depreciation where the asset's book value is decreased at double the rate of straight-line depreciation.