What Defines Flexible Resources

question 61

Multiple Choice

What defines flexible resources?

• A)A change in resource spending will occur only if the demand for a resource drops permanently and exceeds demand enough so the activity capacity will be reduced.
• B)Often,resources are acquired in advance for multiple periods and are therefore irrelevant.
• C)Decisions often affect multi-period capabilities.
• D)If the demand for an activity changes across alternatives,then resource spending will change and the cost of the activity will be relevant to the decision.

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Definitions:

Current Asset Items

Assets expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Finished Goods Inventory

Items in a manufacturer's inventory that are completed and ready for sale.

Direct Materials

These are raw materials that are directly used in the production of a product and are easily traceable to the product itself.