Which of the Following Statements Is TRUE Regarding Capacity Resources

question 4

Multiple Choice

Which of the following statements is TRUE regarding capacity resources?

• A)Raw materials and supplies are examples of intermediate-term resources.
• B)Long-term capacity usually varies directly with production levels.
• C)Flexible resources are usually purchased to acquire intermediate-term capacity.
• D)Long-term capacity resources are expensive and referred to as "committed" resources.

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Definitions:

Capital Base

The amount of capital invested in a business by its owners plus any retained earnings, serving as the financial foundation for growth and operations.

Independent Contractor

A person who is not employed by a business and, unlike employees, is not eligible for a benefit package.

Customer Intimacy

Maintaining a long-term relationship with customers through superior service that results in a competitive advantage.

Market Analysis

The study of market conditions to identify opportunities, trends, and challenges, often involving competitors, customer demographics, and economic environments.