In Practice, the More Commonly Used Techniques for Aggregate Planning

question 39

Multiple Choice

In practice, the more commonly used techniques for aggregate planning are:

• A)mathematical techniques
• B)informal trial-and-error techniques
• C)(a) and (b) about equally
• D)simulation models
• E)linear programming optimization

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Average Cost

The total cost divided by the quantity produced, calculating the cost on a per unit basis.

Total Output

The total quantity of goods or services produced by a firm or economy.