As Capacity Utilization Increases

question 83

Multiple Choice

As capacity utilization increases,

• A)it becomes less important to perform aggregate planning.
• B)it becomes more important to perform aggregate planning.
• C)it does not affect the importance of performing aggregate planning.
• D)it lessens the importance of aggregate planning.

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Definitions:

Segment Margin

The amount of profit or loss generated by a particular segment of a business, considering only the revenues and expenses directly attributable to that segment.

Financial Advantage

The benefit gained in financial terms that puts an individual, company, or country in a better position compared to others.

Special Order Units

Units that are produced or modified specifically as per the customer's specifications, often requiring a deviation from the normal production process.

Annual Financial Advantage

The financial benefit that is realized on an annual basis from a particular investment or action, compared to alternative options.