When Deciding to Add Capacity to a Factory, Which of the Following

question 7

Multiple Choice

When deciding to add capacity to a factory, which of the following need not be considered?

• A) Maintaining system balance
• B) The frequency of capacity additions
• C) Use of external capacity
• D) Immediate product demand
• E) Availability of raw materials

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Definitions:

Compounded Annually

The process where interest is calculated once per year and added to the principal, affecting future interest calculations.

Trust Fund

A legal entity created to hold assets for the benefit of a particular person, group, or organization, managed by a trustee.

Rate Of Return

A measure of the profit or loss of an investment over a given period, typically expressed as a percentage of the investment's initial cost.

Average Rate Of Return

The mean annual growth rate of an investment over a specified period of time, expressed as a percentage.