Capacity Flexibility Means Having the Ability to Rapidly Increase or Decrease

question 27

True/False

Capacity flexibility means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another.

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Definitions:

Open-book Management

A management strategy where employees are given access to financial information about the company to involve them more in its operations.

Macro-aging Schedule

A method used in financial analysis that categorizes accounts receivable or other financial assets based on the period of time they have been outstanding.

Current Ratio

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

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or within the normal operating cycle.