Which Piece of Information Would Be MOST Helpful for Executives

question 13

Multiple Choice

Which piece of information would be MOST helpful for executives at Sanmina-Sci, Inc. to determine whether they should close their service and repair facilities during the last week of the year?

• A) The employees of the facility have more vacation time toward the end of the year.
• B) The amount of service and repair calls in the facility is at the lowest levels during that week.
• C) New equipment deliveries are at their lowest prior to that week.
• D) The amount of work completed by employees prior to that week is the highest in the past year.
• E) The businesses that need equipment repaired from Sanmina-Sci are closed for holidays during that week.

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Definitions:

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer trades in an old item towards the purchase of a new item.

Retain Or Replace

A decision-making process regarding whether to keep an existing asset or replace it with a new one, considering aspects such as costs, benefits, and performance.

Relevant Cost

Costs that should be considered when making a decision because they will affect the future and they differ among alternatives.

Old Equipment

Tangible assets previously used in operations, possibly obsolete or near the end of its useful life.