Assume That a Firm Did Not Operate at Full Capacity

question 29

Multiple Choice

Assume that a firm did not operate at full capacity in the current year. The firm should increase its plant and equipment only if:

• A) its variable cost of goods sold ratio changes in the next year with an increase in operations.
• B) the additional sales forecasted in the next year exceed the unused capacity of the existing assets.
• C) the internally generated funds are in surplus to support the forecasted increase in sales.
• D) the addition of fixed assets in large, discrete units results in economies of scale.
• E) fixed operating costs are not recovered by the revenue from each unit sold by the firm.

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Definitions:

Eating Healthy Foods

The practice of consuming a balanced diet comprised of a variety of nutrients to support overall health.

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Therapy focused on teaching individuals techniques to handle stress effectively and improve their well-being.

Food Behaviors

The actions or habits related to how food is selected, acquired, prepared, and consumed.

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Strategies or practices aimed at decreasing tension and anxiety levels in one’s life.