Building Some Over-Capacity in the Supply Chain Network and Making

question 71

Multiple Choice

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

• A)produce less in facilities that have a lower cost based on current exchange rates.
• B)produce more in facilities that have a lower cost based on current exchange rates.
• C)produce more in facilities that have a higher cost based on current exchange rates.
• D)produce less in facilities that have the same cost based on current exchange rates.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profits that is taken by the government as tax.

Revenue Recognition

The process of recording and identifying revenue in the financial statements when it is earned and realizable.

Percentage-of-Completion

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the project's completion level.

Revenue Recognition

The accounting principle that dictates the conditions under which revenue is recognized or recorded, primarily focusing on the timing and amount.