The Uncertainty in Projecting Demand for Products Means ______

question 28

Multiple Choice

The uncertainty in projecting demand for products means ______.

• A)there is always a gap between available capacity and required capacity
• B)there is always going to be a shortage of a product in relation to demand for a product
• C)there is always going to be a surplus of a product in relation to demand for a product
• D)the manufacturing lead time is going to be fluctuating

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Definitions:

Operating Expenses

Costs associated with running a business's day-to-day activities, excluding the cost of goods sold, such as rent, utilities, and payroll.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its most liquid assets.

Inventory Turnover

This is a ratio showing how many times a company's inventory is sold and replaced over a period, usually a year, indicating the efficiency of inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.