Which of the Following Statements Is True with Regard to Capacity

question 31

Multiple Choice

Which of the following statements is true with regard to capacity planning over different time horizons?

• A)Capacity planning for the long term is called capacity requirements planning.
• B)Capacity decisions in the long term are referred to as capacity control.
• C)Capacity planning for the medium-time range is called capacity requirements planning.
• D)Capacity planning for the short term is called capacity requirements planning.

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Definitions:

Product Cost

The total costs associated with producing a product, including direct materials, direct labor, and manufacturing overhead.

Period Cost

Expenses incurred by a business that are not directly tied to the production process, such as marketing, administration, and sales costs, which are expensed in the period in which they occur.

Advertising Fees

Costs associated with promotional activities to market goods or services, including media buys, production of advertising materials, and related expenses.

Product Cost

The total cost associated with manufacturing a product, including direct materials, direct labor, and manufacturing overhead.