Poor Capacity Planning Can Result in

question 49

Multiple Choice

Poor capacity planning can result in

• A) unbudgeted increase in employee overtime
• B) excess inventory
• C) increase in the number of stockouts during peak demand periods
• D) all of the above

---

Definitions:

Bonds Payable

Long-term debt securities issued by corporations or governments to raise capital, with an obligation to pay back the principal along with interest.

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, influencing the net cash flow from operating activities.

Financing Activities

Transactions and events involving the flow of cash between a company and its owners, investors, or creditors.

Indirect Method

A reporting approach used in statement of cash flows to adjust net income for non-cash transactions and changes in working capital to arrive at cash provided by or used in operating activities.