Which of the Following Would Not Be a Strategy Associated

question 75

Multiple Choice

Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand?

• A) Subcontract.
• B) Vary the size of the workforce.
• C) Vary the intensity of workforce utilization.
• D) Allow inventory levels to vary.
• E) Use back orders.

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Definitions:

Variable Costing

An accounting technique that considers only variable costs - those that vary with production levels - when calculating the cost of producing goods.

Net Operating Income

The earnings a business retains following the subtraction of operational costs, not including interest and taxes.

Net Operating Income

The financial gain a company receives from its essential business operations, prior to the removal of interest and tax costs.

Variable Costing

Variable costing is an accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product.