Which of These Aggregate Planning Strategies Adjusts Capacity to Match

question 16

Multiple Choice

Which of these aggregate planning strategies adjusts capacity to match demand?

• A) back ordering
• B) using part-time workers
• C) counterseasonal product mixing
• D) changing price
• E) None of the above is a capacity option.

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Definitions:

Direct Material

Raw materials that are directly traceable and allocable to a finished product.

Material Purchase Price Variance

A reiteration, focusing on the deviation between the actual amount paid for material and the standard cost.

Standard Price

The predetermined cost assigned to materials, labor, and overhead for the purpose of budgeting and cost control.

Actual Purchase Price

The specific cost paid for goods or services at the time of purchase, as opposed to the budgeted or standard cost.